Written Answers. - Unclaimed National Lottery Prizes.
Kathleen Lynch
Question:
44
Kathleen Lynch
asked the
Minister for Finance
whether he will amend the legislation governing the national lottery to allow unclaimed prize money to be allocated to social or charitable projects rather than being returned to the general prize fund within 90 days as is currently the case.
[1549/95]
Unclaimed prizes are returned to players in many innovative ways to stimulate national lottery games. These include special prizes in instant games as well as supplementing lotto jackpots from time to time. Experience has shown that such jackpots are popular with players. They help to sustain public interest in the lottery and encourage additional players to participate. By returning unclaimed prizes to players the national lottery can in the longer term achieve a greater return to the beneficiary fund programmes than would be achieved by a direct allocation of unclaimed prizes. To take the unclaimed prizes away from the players would run the risk of jeopardising the long term success of the lottery games and consequently the beneficiary fund programmes which are supported by lottery funds.
I remind the House that very many social and charitable bodies have received grants from the beneficiary fund since the lottery was introduced.
I might mention that it would not in fact be necessary to amend the National Lottery Act, 1986, to allow for unclaimed prize money to be allocated to social or charitable projects. The provision in relation to unclaimed prizes is contained in the rules of the lottery which are agreed between the lottery company and the Minister for Finance.
For the above reasons I do not propose to amend the rules on the lines suggested by the Deputy.
Kathleen Lynch
Question:
45
Kathleen Lynch
asked the
Minister for Finance
if he will ensure that VAT arrangements that militate against the work of fair trade organisations is altered to ensure either that VAT is removed at the point of entry, or that they are granted exemption from having to pay VAT in view of their charitable work.
[1548/95]
Mary Harney
Question:
65
Miss Harney
asked the
Minister for Finance
the plans, if any, he has to abolish VAT at the point of entry for goods being imported from Third World countries, in particular when the company importing the goods has charity status; and if he will make a statement on the matter.
[1285/95]
Trevor Sargent
Question:
66
Mr. Sargent
asked the
Minister for Finance
if his attention has been drawn to the difficulties organisations such as a Third World trading organisation (details supplied) face as a result of the rule which requires VAT to be paid at the point of entry; and the plans, if any, he has to collect VAT at the point of sale only or perhaps remove VAT at point of entry for imports by such organisations.
[1380/95]
I propose to take Questions Nos. 45, 65 and 66 together.
I confirm that I have received representations on behalf of the company referred to by the Deputy. VAT is charged at point of entry into the State on all goods originating from outside the customs territory of the European Union. There is no provision in Irish law under which this requirement could be waived for particular companies or categories of goods. The complete abolition of VAT at the point of entry would be required to provide the kind of concession being sought. This course of action would involve a very significant cash-flow for the Exchequer and, accordingly, cannot be contemplated in present budgetary circumstances.
As regards the question of providing an exemption from VAT, I should explain that because the company in question, a trading company, is not engaged in one of the exempt activities provided for in EU VAT law, it cannot be afforded exemption from the tax. Indeed, exempt status might only worsen its position because it would not be able to recover VAT paid at point of entry. VAT is, generally speaking, only recoverable by VAT-registered traders. I understand that the company referred to by the Deputy is, in fact, properly registered for VAT, although it has charitable status. The only point at issue is the situation with regard to cash-flow, that is, the time which the company must wait in order to recover the VAT paid at point of entry in its normal VAT return.
While the company states it must wait for up to a year for repayment, I must point out that repayment periods of up to a year in relation to VAT at point of entry should normally only arise for traders who opt for annual returns for VAT purposes. All traders have the right to make returns on the more usual bimonthly basis and this could reduce considerably any cash-flow difficulty being experienced relating to the payment of VAT at point of entry.
