Seán Crowe
Question:258 Mr. Crowe asked the Minister for Finance if contributions to a community fund/initiative made by individuals, local groups or business can be claimed in benefit against tax. [2156/03]
Written Answers. - Tax Code.
There are no specific reliefs under the tax code for donations or contributions to community funds-initiatives, whether made by individuals, local groups or businesses.
In the Finance Act 2001, I consolidated and significantly extended the schemes of tax reliefs for donations to a variety of approved bodies. These include eligible charities, approved for that purpose by the Revenue Commissioners for more than three years, first, second and third level educational institutions as well as a number of other named bodies. The relief is available in respect of donations by individuals as well as by corporates and is based on donations in any year being in excess of €250. There is no upper limit on the level of donations which can avail of the relief.
In the Finance Act 2002, I introduced a similar scheme of relief to fund approved capital projects by sports organisations. The scheme is structured in exactly the same way as that for the donations to approved bodies. However, there is an upper limit set in respect of projects estimated to cost in excess of €40 million.
It may be that certain of the bodies the Deputy is referring to have, or could obtain approval from the Revenue Commissioners as bodies established for charitable purposes only in their own right. As such and subject to the three year rule I mentioned earlier, tax relief would be available for donations to them. Furthermore in certain situations, payments made to community funds/initiatives, for example, for sponsorship may legitimately be characterised as business expenses. These payments would then be deductible for tax purposes in the normal way. The specific circumstances would determine the appropriate tax treatment.
If the Deputy has any specific community fund-initiative in mind, I suggest that he write to me with the details and I will be happy to arrange to have it followed up at official level.