I propose to take Questions Nos. 139 and 141 together.
Charitable tax exemption is provided for by Section 207 of the Taxes Consolidation Act (TCA) 1997.
Section 3 of the Charities Act 2009, which was commenced on 16 October 2014, introduced definitions of charitable purposes into primary legislation for the first time. The Commissioners now apply these definitions when determining eligibility for charitable tax exemption. The definitions are classified under four main headings:
1. The prevention or relief of poverty or economic hardship.
2. The advancement of education.
3. The advancement of religion.
4. Any other purpose that is of benefit to the community.
Prior to the Charities Act of 2009, and because the Tax Acts do not define charity or charitable purposes, Revenue relied on the general law and judicial decisions to determine a definition. In this regard, an 1891 House of Lords judgment was the benchmark used to determine the legal meaning of charity. This ruling also classified charitable purposes under four headings, known as the 'Pemsel Categories' and these closely mirror the four categories now contained in the 2009 Act.
The Charities Act of 2009 also provides for the creation of a Charity Regulator, which was established on 16 October 2014. The role of the Regulator is to oversee compliance by Charities with their legal obligations and to ensure proper governance in respect of registration, the preparation of statements of account and the submission of annual activity reports (to the Regulator).
With regard to the second question, where a Body/Trust is aggrieved by a Revenue refusal to grant a charitable tax exemption, it is entitled to appeal that decision to the independent Appeal Commissioners. However, there is no provision in the Tax Acts for a 3rd party to appeal the granting of a charitable tax exemption to a specific Body/Trust.
