Brendan Ryan (Dublin Fingal, Labour)
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166. To ask the Minister for Finance the way in which Irish and international artists performing at major concert venues such as Croke Park, the Aviva Stadium, the 3Arena and so on are treated for tax purposes; and if he will make a statement on the matter. [39732/16]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by Revenue that Irish resident artistes are taxable in Ireland on their worldwide income. Artistes who are not resident in the State for tax purposes have a  liability to Irish tax on income arising from the exercise of their profession in the State. However, because foreign resident artistes merely have a transitory presence in the State, there are numerous practical difficulties associated with enforcing such a liability. For example, the vast majority of non-resident entertainers do not file an Irish tax return and there is therefore no effective mechanism to quantify the potential tax exposure of such entertainers on the income related to their Irish performances and to collect any tax owing. Similarly, an alternative system which would impose an obligation on paying agents to deduct tax from payments made to foreign entertainers and account for the tax to Revenue, would also present many difficulties such as the requirement to identify the paying agent, in order to enforce collection, as well as placing a costly compliance burden, both on Revenue and the non-resident artistes and paying agents. Imposing tax therefore would be administratively cumbersome relative to the potentially small prospective yield and would also undoubtedly discourage some artistes from performing in the State.

I can however advise the Deputy that in general where a concert takes place in Ireland, the artists performance fee is subject to Irish VAT. Where an international performer is engaged by a promoter, it is the responsibility of the promoter to account for the VAT due on the performance fee. This means that where the promoter is established in Ireland, the promoter is required to account for Irish VAT on the performance fee. In circumstances where the artist and promoter are both established outside the State, the promoter is required to account for VAT on the performance fee where she/he is established.

Where a premises provider allows a promoter who is not established in the State to hold a concert on their premises, the provider must report details of the event to Revenue. Failure to do so can make the premises provider jointly liable for any VAT arising. This is a safeguard provision to ensure the correct VAT is collected and paid in relation to any merchandise sold at the concert venue.