Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Charitable Donations.

Trevor Sargent

Question:

502 Mr. Sargent asked the Minister for Finance whether he will issue a list or schedule of prescribed charities in relation to donations to which tax relief may be claimed by the company making the donation; and if he will make a statement on the matter. [1528/98]

Trevor Sargent

Question:

506 Mr. Sargent asked the Minister for Finance the reason that donations made to charities will only qualify for tax relief if made by companies rather than by individuals in view of the increasing number of high earners being produced by the tiger economy; and if he will make a statement on the matter. [1532/98]

Trevor Sargent

Question:

507 Mr. Sargent asked the Minister for Finance whether a deed of covenant type arrangement will apply to tax deductible donations made by companies to eligible charities or whether some other type of arrangement is envisaged; and if he will make a statement on the matter. [1533/98]

Minister for Finance (Mr. McCreevy):

I propose answering Questions Nos. 502, 506 and 507 together.

In my Budget Statement, I announced the introduction of a new tax relief on company donations, within certain limits, to eligible charities. Details of the proposed legislation regarding company donations to charities will be available in the Finance Bill which is due to be published in mid-February. The intention is that the relief will be available directly to companies for donations to eligible charities by way of a deduction from their profits for tax purposes. The legislation will also provide for information regarding the names and addresses of eligible charities for the purposes of the relief to be available from the Revenue Commissioners.

The new tax relief was introduced along the lines requested by the Irish Charities Tax Reform Group. The Irish Charities Tax Reform Group sought the introduction of a tax relief on company donations only. The aim of the relief is to stimulate donations from companies. To extend the relief to donations from individuals would substantially increase the cost of the relief.