Tuesday, 13 October 2020
Department of Finance
Charitable and Voluntary Organisations
113. To ask the Minister for Finance if he has considered reintroducing the tax deductions on donations for charities in view of the shortfall many charities are facing due to the Covid-19 pandemic; and if he will make a statement on the matter. [30208/20]
Section 848A of the Taxes Consolidation Act, 1997 provides that where an individual makes a charitable donation, the approved charitable body receiving it can claim a refund of income tax paid on that donation at a blended 'grossed-up' rate of 31%. The requirements of the scheme include:
- A minimum donation of €250 per annum must be made;
- The donor or anyone connected with the donor cannot get a benefit of any kind resulting from the donation; and
- The donor must pay income tax of an amount equal to the income tax on the grossed up amount of the donations in order for the body to receive a refund of tax.
I believe that providing the relief directly to the charity is more effective in supporting the aims of the charity and more equitable as regards individual taxpayers than directing the relief to the donor.
Companies are entitled to claim a corporation tax deduction in respect of donations to eligible charities; however, in these circumstances the charity itself does not claim tax relief from Revenue.