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Sports Funding

Dáil Éireann Debate, Tuesday - 24 April 2018

Tuesday, 24 April 2018

Questions (58, 72)

Hildegarde Naughton

Question:

58. Deputy Hildegarde Naughton asked the Minister for Transport, Tourism and Sport the rebates available to sports clubs in respect of donations made to them by private citizens; and if he will make a statement on the matter. [17756/18]

View answer

Alan Farrell

Question:

72. Deputy Alan Farrell asked the Minister for Transport, Tourism and Sport the benefits available to sports clubs in respect of donations made to them; his plans to expand same; and if he will make a statement on the matter. [17762/18]

View answer

Written answers

I propose to take Questions Nos. 58 and 72 together.

The Sports Capital Programme (SCP) is the primary vehicle for Government support for the development of sports and physical recreation facilities and the purchase of non-personal sports equipment throughout the country. The full terms and conditions of the SCP are available on my Department's website.

The Revenue Commissioners operate a tax relief scheme for donations to certain sporting bodies under Section 41 of the Finance Act 2002. Obtaining the tax relief is a three stage process. Firstly, the club or group must apply to the Revenue Commissioner to become an "approved sports body". Secondly, the approved body applies to my Department for their project to be an "approved project". The possible project types include acquiring land or buildings for sports purposes, developing sports facilities, purchasing fixed non-personal equipment for sports activities, or repaying a loan for any of these purposes. Finally, PAYE donors fill out a certificate and supplies this to the club. The club may then apply to Revenue for the tax relief on this donation. While the exact amount of relief is a matter for Revenue, I understand that relief is given at the higher rate of tax on a "grossed-up basis". In the case of a donation made by an individual who pays tax on a self-assessment basis, the individual will be entitled to claim a tax deduction for the donation in computing his or her total income and there is no grossing up arrangement. Similarly, in the case of corporate donations, the company will be entitled to claim a deduction for the donation as if it were a trading expense or an expense of management in computing total profits of the company for the relevant accounting period.

Full details on how this tax relief scheme operates, including a step by step guide to the scheme, can be found on the Revenue Commissioner's website https://www.revenue.ie/en/companies-and-charities/charities-and-sports-bodies/tax-relief-on-donations-to-certain-sporting-bodies/index.aspx.

There have been calls from the sporting sector for the expansion of the existing scheme and the consideration of further taxation measures to promote donations to sports clubs, including during the public consultation on the National Sports Policy. I see merit in these proposals, and I have had discussions with officials from the Department of Finance in this regard. The National Sports Policy, which will be launched in the near future, will consider taxation measures as a component of the future funding for Irish sport.

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