Caoimhghín Ó Caoláin
Question:176 Caoimhghín Ó Caoláin asked the Minister for Finance if there are special income tax arrangements for Cumann Luthchleas Gael or for other sporting bodies. [9133/04]
View answerTuesday, 23 March 2004
Questions (178)
Written answers
Bodies established and existing for the sole purpose of promoting athletic or amateur games or sports are exempt from income tax, dividend withholding tax and corporation tax in the case of an incorporated body. The exemption from tax only applies to so much of the income as is shown to the satisfaction of the Revenue Commissioners to be income which has been or will be applied for the sole purpose of promoting such games or sports. These general exemptions are currently provided for in section 235 of the Taxes Consolidation Act 1997 but have their origins as early as 1927 where specific exemptions were made for the games of Gaelic football, hurling and handball.
Relief from income tax or corporation tax is also available in respect of donations to approved sports bodies for the funding of certain capital projects. This relief was introduced in the 2002 Finance Act and is provided for in section 847A of the Taxes Consolidation Act 1997. To be eligible for the relief, the project must be approved by the Minister for Arts, Sport and Tourism and the aggregate cost must not exceed €40 million. The sports body must be exempt from tax under section 235 and it must have a valid tax clearance certificate. The relief, which is available at the donor's marginal tax rate and subject to a minimum qualifying donation of €250 in a year of assessment, is given by way of refund of tax by Revenue to the sports body in the case of a PAYE donor and by way of a trading deduction in the case of a self-assessed individual or corporate donor.