Dáil Éireann Debate, Thursday - 19 July 2012
78 Deputy Kevin Humphreys asked the Minister for Finance the estimated savings that would accrue to the Exchequer if educational institutions or bodies including primary, second level or third level, were no longer eligible for the scheme of tax relief for donations to eligible charities; and if he will make a statement on the matter. [36127/12]
View answerSection 848A of the Taxes Consolidation Act 1997 provides for a scheme of tax relief for donations to eligible charities and other approved bodies. The precise arrangements for allowing tax relief on donations varies depending on whether the donor is a PAYE taxpayer, a person subject to self-assessment or a company. For PAYE-only taxpayers, the relief is given on a "grossed-up" basis to the approved body rather than by way of a separate claim to tax relief by the donor. The claim is therefore made to the Revenue Commissioners by the approved body. In the case of a donation made by an individual who pays tax on a self-assessment basis, the individual claims the relief and there is no grossing up arrangement. In the case of a company, it will claim a deduction for the donation as if it were a trading expense and there is no grossing up arrangement.
I am informed by the Revenue Commissioners that, because of the different arrangements, as outlined above, for claiming the tax relief and the fact that the records maintained by them do not readily differentiate between the different types of charities and approved bodies availing of the relief, the information requested by the deputy is not readily available and either could not be identified or could not be identified without conducting an extensive investigation of the Revenue Commissioners' records.
