Vol. 439 No. 7
20 Mr. Yates asked the Minister for Finance the proposals, if any, he has to extend section 51 of the Finance Act, 1993, to enable donations to be made to charitable organisations with consequent relief to the corporate sector from corporation profits tax.
The general thrust of corporation tax policy over the past few years has been towards broadening the tax base and eliminating special tax reliefs and shelters in favour of a lower rate of mainstream corporation tax. Having said that, there will always be a role for targeted, sharply focused reliefs and incentives which provide a clear and verifiable return in terms of employment.
The 1993 budget and Finance Act contained a comprehensive package of measures designed to assist job creation and stimulate enterprise which spanned all areas of the tax code. The relief granted under section 51 of the 1993 Finance Act to First Step was a small but important part of this package and its introduction must be seen in this context.
In keeping with the need to maintain the general direction of policy towards broadening of the tax base it is necessary to maintain the clear policy-based focus of reliefs such as that granted under section 51. The purpose of this relief is clear; it is a measure to assist an organisation with a proven track record in the area of enterprise development to further improve upon the excellent service which they provide and I believe that it is important to maintain that clear focus. Not only would an extension of the relief obscure this focus, it could also be very costly to the Exchequer. Accordingly, I do not propose to extend the scope of this relief.
