asked the Minister for Finance if his attention has been drawn to the fact that there is considerable concern among accountants and taxpayers at the continuing delays and failure on the part of the Revenue Commissioners to make determinations in respect of the artistic nature of certain works; and whether he has any proposals to deal with the matter.
Ceisteanna—Questions. Oral Answers. - Tax Exemption for Artists.
6.
I assume that the Deputy is referring to the income tax exemption under section 2 of the Finance Act, 1969 for certain earnings of writers, composers and artists resident in Ireland.
Where the conditions required by the section have been satisfied concerning original and creative works regarded as having cultural or artistic merit, there is an obligation on the Revenue Commissioners to allow the exemption from tax provided for in the section. I have been advised by the Revenue Commissioners that the relief is being administered in accordance with the provisions of the section.
While a decision as to whether a particular work qualifies for exemption may take a significant amount of time, because of the consultative process involved in each case, the Revenue Commissioners have assured me that in general no inordinate delays are occurring. Neither I nor the Revenue Commissioners are aware of the concern mentioned. If the Deputy has knowledge of any particular case where difficulties or problems have arisen, I will have the matter investigated on receipt of the necessary details identifying the relevant case.
I know that Deputy Quill had in mind representations from the accounting profession because they very frequently find that no decision is given. Will the Minister consider introducing a system that where a decision is not given in a certain period — in the case of planning permission a decision has to be given within a certain period — it should be granted or deemed to be refused and leave given to the person to appeal? At any rate, a definite decision should be made by someone. Will the Minister agree that it is most unsatisfactory to have an unstructured consultative process with no time limits? The Finance Bill will be debated soon and perhaps a time limit could be included in it for a decision.
I agree with the Deputy's remarks but I should like to give the House full information on the points raised. The Revenue Commissioners say that most applications for which complete documentation is received are dealt with within two or three months. The Deputy said that the complaint came from the accountants but I should like individual details because we only get a small number of representations — fewer than 20 — each year about the relief. These are nearly always concerned with whether a particular claimant should qualify for relief, not with delays. However, we will take action if the Deputy furnishes details. The Revenue Commissioners also said that, since 20 March 1987, they have received 243 claims for the relief. The applicants in about 180 of these have been informed that Revenue have made a favourable determination in their case or that they have been unable to do so; 27 of the remainder were received very recently and are in the process of being transmitted to the authoritative body. Eighteen are with the body for decision and the rest — about 20 — are currently being processed. That is a fairly good record on the basis of our information but if Deputy Quill, Deputy McDowell or any other Deputy has information in regard to delays we will be glad to have it and we could then make further investigations.