Vol. 551 No. 3
144 Mr. Gregory asked the Minister for Finance if fellowships are as a rule exempt for tax purposes; if the fellowship awarded by the Combat Poverty Agency to a person (details supplied) will be declared so exempt to remove the anomaly whereby a substantial proportion of a fellowship awarded to assist study is being paid in PRSI and PAYE; and if he will make a statement on the matter. [10437/02]
I am advised by the Revenue Commissioners that there are no provisions in the Taxes Acts for exemption income from a fellowship. However, there are provisions in Section 193 of the Taxes Consolidation Act, 1997, whereby income from a scholarship held by a person receiving full-time instruction at a university, college, school or other educational establishment is exempt from income tax. It may be that the income of the person in question is from a scholarship and not from a fellowship. While it would appear that the person in question may not meet the necessary require ments on the basis of the information supplied, the person should, in order to clarify the matter further, communicate directly with Mr. Jim Purcell, Direct Taxes Administration, Blocks 8/10, Dublin Castle, direct phone number (01) 7024101.
