Dáil Éireann Debate, Thursday - 21 February 2019
1. Deputy Niamh Smyth asked the Minister for Culture, Heritage and the Gaeltacht the actions she has taken to examine the extension of the artists’ tax exemption to artists working through other mediums; if she has met with the Minister for Finance to discuss the expansion of the exemption; and if she will make a statement on the matter. [8695/19]
View answerAs the Minister is aware, the artists tax exemption covers a limited number of mediums, namely, written works, music, the visual arts and sculptures, subject to a maximum of €50,000 per annum. What actions is the Minister taking to examine the expansion of the exemption to other mediums?
I thank the Deputy for raising the important issue of the artists tax exemption scheme which was introduced in 1969. Under the scheme, the profits or gains accruing to a writer, composer, visual artist or sculptor from the publication, production or sale of his or her work is exempt from income tax.
Under section 195 of the Taxes Consolidation Act 1997, the Arts Council and the then Minister for Arts, Heritage and the Gaeltacht drew up guidelines for determining whether a work within specified categories is an original and creative work and whether it has, or is generally recognised as having, cultural or artistic merit. On receipt of an application for the artists tax exemption scheme, the Office of the Revenue Commissioners is empowered to make a determination that a certain artistic work is both original and creative and has, or is generally recognised as having, either cultural or artistic merit.
A work shall be regarded as original and creative only if it is a unique work of creative quality brought into existence by the exercise of its creator’s imagination. A work shall be regarded as having cultural merit only if by reason of its quality of form or content or both it enhances to a significant degree one or more aspects of national or international culture.
The scheme allows the Revenue Commissioners to make a determination only in respect of artistic works in the following categories: a book or other writing; a play; a musical composition; sculpture; or a painting or other like picture.
Where a determination is not made, in effect, the application is rejected. There is a right of appeal to an independent appeal body in the event that Revenue declines to issue a determination.
The exemption only applies to income taxes and does not extend to VAT. The maximum amount of income exempted from tax is €50,000 per annum.
The names of recipients of the artists exemption together with the art work for which the relief is claimed are published on the Revenue Commissioners website.
I wish to advise the Deputy that although I have not discussed the expansion of the exemption with the Minister for Finance, these matters are kept under review.
It is welcome that the matter is kept under review because, as the Minister is aware, the arts have expanded in terms of the mediums and forms in which art is created. We now have sound, multimedia and performing artists and it is very important that the scheme is updated to take account of contemporary art practice.
A recent review of pay and conditions by Theatre Forum found that low pay, poor conditions and precarious work for the performing arts are having a serious impact on artists and arts workers. Some of the statistics it uncovered are frightening. Some 30% of performing artists earned less than the minimum wage in 2018. Some 83% are paid flat fees rather than for hours worked. Some 53% of art organisations do not have a pension or personal retirement savings account arrangement for their staff, while four fifths of jobs in performing arts are precarious. Artists working through various mediums have raised the issue of working conditions with me.
I fully accept that the artists tax exemption is a complicated area on which the Minister must work closely with the Minister for Finance, but it may be one avenue which could be used to address these issues. Culture 2025 committed the Government to a critical analysis of direct and indirect supports funding arts and cultural activities and to improve funding structures through multi-annual and cross-stream funding and investment in regional and local services. Will the Minister commit to working with the Minister for Finance to consider the inclusion of artists working through other mediums in the tax exemption scheme?
It is important to note that just over 1,000 artists have been granted a favourable determination by the Revenue Commissioners since 2017 under the categories of writing, plays, musical composition, painting and sculpture. The focus of the Government is on increasing funding for the arts in general, as evidenced by the Taoiseach's repeated commitment to double the amount of funding over a ten-year period. My Department received a 13% increase in funding in the Estimates for this year. There has been a €6.8 million or 10% increase in funding for the Arts Council, while €1.2 billion in capital funding for culture, heritage and the Gaeltacht has been allocated over the ten years to 2028 as part of the national development plan. That includes €460 million for an investment programme in our national cultural institutions and a €200 million audiovisual action plan which I launched last summer. The Government will continue to give consideration to any measures to further deliver on its commitments, including the artists tax exemption which is kept under constant review.
It is wonderful that 1,000 artists have availed of the exemption but I assure the Minister that thousands of artists in the creative industries are unable to access or avail of the exemption. That is why I urge the Minister to keep an open mind on reviewing and broadening the scheme. I invited representatives of Theatre Forum to Leinster House at the beginning of the year. It is stark and frightening that some artists are unable to afford certain basic services such as rent, childcare and healthcare.
Global Ireland 2025 committed the Government to implementing a range of further measures internationally, including the promotion of Irish arts, heritage and culture to new generations and audiences across the world. One of the key issues raised by the representatives of Theatre Forum in January is the position of Irish artists in Ireland compared to the esteem in which they are held when they represent Ireland abroad. This is a valid issue. When artists attend embassies or go abroad, they are held in high esteem, but the reality when they come home is that many cannot afford rent, childcare or healthcare.
I do not believe Fianna Fáil is in a position to lecture this Government on the funding of the arts or artists' pay and conditions. As we know, Fianna Fáil, when in government between 2007 and 2011, cut funding for the arts by €67 million. The majority of the funding available was for the Arts Council, which the Deputy has mentioned before. There was a decrease from €206 million to €139 million, which is a funding cut of 33%. In budget 2019, Fine Gael saw funding rise by 37% since the time of the cuts in 2011. This is a rise to a sustainable level. Fianna Fáil, when in government between 2007 and 2011, cut the budget to an unsustainable level. I have outlined a commitment the Taoiseach has given to double funding in this area by 2025. We are doing a considerable amount to achieve that.
