Dáil Éireann debate -
Tuesday, 11 Apr 2000

Vol. 517 No. 6

Written Answers. - National Stadium.

Bernard Allen

Question:

204 Mr. Allen asked the Minister for Finance if the £50 million donation committed to the proposed national stadium qualifies as a gift of property to the nation under the State Property Act, 1998; and the extra benefits which can be claimed by the donor in relation to residency as a result of the gift. [10726/00]

Minister for Finance (Mr. McCreevy):

As I indicated in reply to a question on 30 March 2000, section 19 of the State Property Act, 1954, deals with gifts of property made to the State, the nation or the people. It is for the Government to decide whether to accept or refuse any gift made under the Act. I also outlined that the offer to contribute £50 million towards the financing and development of Campus and Stadium Ireland had been accepted by the Government as a gift under the State Property Act, 1954, and vested in An Taoiseach, as the appropriate State authority.

I am not aware that any extra benefits in relation to tax residency can be claimed automatically as a result of the gift. The State Property Act, 1954, contains no taxation provisions apart from a stamp duty exemption on any transfer of property to the State under the Act.

There is a special tax relief available in regard to gifts to the State by non-residents under section 825 of the Taxes Consolidation Act, 1997. This provision was introduced in the 1977 Finance Act to deal with a particular case involving a gift to the State of a heritage type property. Section 825 provides that where a person makes a gift of property to the State, and it is accepted as a gift under the State Property Act, 1954, any visits by that person, or their spouse when accompanying that person, shall be disregarded in determining whether that person or their spouse is resident or ordinarily resident in the State for the purposes of Irish tax. Visits in this case are defined in the section as visits by the donor for the purpose of advising on the management of the property which is the subject of the gift, being visits that are in the aggregate less than 182 days in any year of assessment in which they are made.

It is by no means clear that this section can be interpreted as applying to a financial contribution. The question of whether a particular donation to the State qualifies for this latter relief, which is long standing and of general application, is a matter to be determined on the facts of each individual case. The Government has no role in that determination.