Maureen O'Sullivan (Dublin Central, Independent)
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182. To ask the Minister for Finance the amount the Revenue Commissioners paid in 848(a) tax claims to each individual charity in the years 2009, 2010, 2012 and to date in 2013; if he will provide an explanation on the way the Revenue Commissioners assess claims made by charities including the percentage rejection rate of claims for each charity; if he will provide the number of meetings held between the Revenue Commissioners and the Irish Charities Tax Reform Group; and if he will make a statement on the matter. [27428/13]

Michael Noonan (Limerick City, Fine Gael)
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Section 848A of the Taxes Consolidation Act 1997 provides a scheme for tax relief on donations to eligible charities and other approved bodies. A list of the bodies that qualify for the scheme is available on Revenue's website: www.revenue.ie at the following link: http://www.revenue.ie/en/business/authorised-charities-resident.html.

In relation to donations made prior to 1/1/2013 the precise arrangements for allowing tax relief on donations varied depending on whether the donor, was a PAYE taxpayer only, a chargeable person subject to self-assessment or a company. For a PAYE only donor, the relief was given on a “grossed up” basis to the eligible charity or approved body, as the case may be, rather than by way of a separate claim to tax relief by the donor. In the case of a self-assessed donor, that individual claimed the relief and there was no grossing up arrangement. In the case of a company, a deduction was claimed for a donation as if it were a trading expense. The Finance Act 2013 has introduced a number of amendments to the scheme, which are effective from 1 Jan 2013, including the alignment of treatment for PAYE and Self Assessed donors, the introduction of a 31% blended rate and the capping of eligible donations at €1m.

In regard to the Deputy’s request for details on the amount of money paid to each Charity under Section 848A and the percentage rejection rate for each Charity, Revenue has advised me that its obligation to observe confidentiality precludes it from disclosing such information. However, Revenue has provided details in the table below of the total amounts refunded under the scheme to approved bodies during 2009, 2010, 2011, 2012. Accurate data for 2013 will not be available until the end of the year.

In regard to the assessment of claims made by Charities, such claims are individually checked to ensure they fulfil the conditions of the scheme as listed below:

- That the donation is not less than €250 for the specific year;

- That the donation is in the form of cash and/or designated securities and does not give any benefit to the donor;

- That the Charity is claiming the relief on contributions made by PAYE-only individuals;

- That the claim does not include donations from individuals who are either fully or partially on self-assessment;

- That if the donor is an employee or member of the Charity, tax relief on the contribution is restricted to 10% of the total income of the individual for the relevant year of assessment;

- That sufficient tax was paid by the donor to cover the tax relief allowed to the Charity.

Finally, officials from the Revenue Commissioners attend regular meetings with the Irish Charities Tax Reform Group to discuss a range of issues. Specifically, 7 meetings took place between both parties during the design period of the simplification of the Charitable Donations Scheme which was announced in the 2013 Finance Act and which came into effect from 1 Jan 2013.