Dáil Éireann Debate, Tuesday - 11 June 2013
159. Deputy Anthony Lawlor asked the Minister for Finance his plans to review the tax exemptions to religious organisations, taking into consideration the country's current economic difficulties; and if he will make a statement on the matter. [26864/13]
View answerTax relief for charitable donations is provided for in section 848A of the Taxes Consolidation Act 1997. In order to qualify for this relief a charitable trust must be for either:
- The relief of poverty;
- The advancement of religion;
- The advancement of education; or
- Other purposes beneficial to the community.
In addition, the charity must have been authorised by the Revenue Commissioners as an eligible charity and hold charitable exempt status for at least two years.
Religious organisations in the State hold charitable tax exemption under the category of "advancement of religion". Parishes within a diocese are covered by the tax exemption granted to that diocese and, therefore, are eligible to submit claims for a refund of tax under the scheme. Relevant bodies of other religious organisations would also qualify for charitable tax exemption.
Bodies granted charitable tax exemption are subject to periodic risk-focused review by the Revenue Commissioners towards ensuring that the terms of the exemption continue to be fulfilled. Claims submitted by charitable bodies for a refund of tax are examined by the Revenue Commissioners to ensure that the applicants and the donations meet with the terms and conditions of the Donations Scheme.
As the Deputy will be aware, following a public consultation on proposed changes to the scheme of tax relief for donations to approved bodies, I announced changes to the scheme in the recent Budget. Full details can be found in Annex E of the Budget book. I have no plans to review the scheme further at this time.
