(South Tipperary) asked the Minister for Finance if he will consider granting income tax exemption in the case of non-profit making bodies such as the Voluntary Health Insurance organisation and bona fide charitable community bequests.
Ceisteanna—Questions. Oral Answers. - Income Tax Exemption.
51.
The matter raised by the Deputy is one which would require Finance Bill legislation; and he will appreciate that I cannot indicate in advance what proposals my Budget Statement may or may not include.
Is the Minister aware that in 1957 an understanding was reached by his Department and the Department of Health that an exemption on the lines suggested in the question would be introduced in the Finance Bill of 1957? Is he further aware that he undertook some years ago in this House to examine that suggestion and to introduce remedial legislation? Will the Minister explain why that has not been done since?
That allegation was made against my Department before. I cannot find any evidence either in the Finance Department or the Revenue Department about any undertaking in 1957 to meet this point.
Is the Minister aware that in the drafting of the Voluntary Health Insurance Bill, a section providing for this tax exemption was included and was taken out of the Bill, at the instance of the Department of Finance, who felt they were not the proper Department to deal with tax exemption. That was taken out on the basis that it would be introduced in the coming Finance Bill.
It was a section in the heads of the Bill.
The Department of Finance would naturally say that if anybody should do that, Finance should do it, but I cannot find in any case that they did do it.
It should be done. Why should a non-profit making State body pay income tax?
It is largely a matter of precedent. There are many other non-profit making bodies.
They do not deal with health.
They deal with other things.