Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 215: To ask the Minister for Finance if there are conditions governing the letting of accommodation which receives tax relief as student accommodation to persons who are not students; if the eligibility for continuing taxable relief is jeopardised by such practices; and if he will make a statement on the matter. [37673/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that in order to avail of the tax relief to which the Deputy is referring, the accommodation must, among other requirements, be used for letting to students in accordance with the relevant guidelines. These guidelines are issued by the Minister for Education and Skills, in consultation with the Minister for the Environment, Heritage and Local Government with the consent of the Minister for Finance. The original guidelines were issued in 1999 with a further clarification document issuing in July 2005. In order to comply with the guidelines, the accommodation must be let to the student or to the institution for on-letting to the student, for the academic year. A student means a person pursuing a course of full-time study in the institution. The development itself must be certified by an educational institution for use by its own students. One or more institutions can certify a single development.

The July 2005 clarification document modified the "academic year" requirement to allow for a limited number of situations in which the lease may be for a period of less than an academic year. These are where the development is not completed until after the start of the academic year, the course duration is short or where a lease is unexpectedly terminated during the year.

The accommodation may be let to non-students for periods outside of the academic year, which generally means the Summer months, without loss of entitlement to the relief. Apart from this, only students from the certifying educational institution may occupy the accommodation. Surplus accommodation during the academic year cannot be occupied by non-students or by students from other, non-certifying educational institutions.

Michael Noonan (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 216: To ask the Minister for Finance when he will sign the ministerial order regarding the leisure sector arising from section 117(2)(b) of the 2010 Finance Act; and if he will make a statement on the matter. [37674/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Section 117 of the Finance Act 2010 included provision to make public bodies subject to VAT with effect from 1 July 2010 in accordance with the European Court of Justice ruling against Ireland of 16 July 2009 in Case C-554/07. In summary, the VAT Act 1972 was amended to provide that public bodies, including local authorities, are made subject to VAT. More specifically, they are subject to VAT where they engage (i) in economic activities; (ii) in any activities as outlined in Annex I of the EU VAT Directive, unless the activity is carried out on such a small scale as to be negligible; and (iii) in the case of their regulatory capacity as a public authority, when their treatment as non-taxable could lead to a distortion of competition. These are subject of course to the activity not being otherwise exempted from VAT. During the debate on the Finance Bill, I undertook to look again at the provisions, in particular in relation to the supply of community and sports facilities by public bodies, especially local authorities. Accordingly I amended the legislation to provide that the new VAT rules for public bodies, in relation to the supply of sports and community-type facilities, will be commenced by order, rather than on 1 July 2010. This is to allow for a more complete examination of the issues, including an analysis of how the new rules might best be implemented. In the circumstances, I have no immediate plans to introduce an Order to that effect.