Wednesday, 18 December 2019

Questions (131)

Catherine Connolly

Question:

131. Deputy Catherine Connolly asked the Minister for Finance if voluntary groups not legally recognised as charities but registered with the Revenue Commissioners as voluntary non-profit groups are automatically obliged to file annual income tax returns to the Revenue Commissioners; if not, if a voluntary non-profit group can apply to its regional tax office for written certification of an exemption to file for income tax by the Revenue Commissioners; and if he will make a statement on the matter. [53654/19]

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Written answers (Question to Finance)

I am advised by Revenue that a “chargeable person” – that is, an individual or other body who is chargeable to tax for a chargeable period (for example, a tax year) – is required to file a tax return.  This could include a voluntary non-profit making organisation in receipt of taxable income.  Voluntary non-profit making organisations can register for tax using this form: https://www.revenue.ie/en/starting-a-business/documents/reg-form-voluntary-non-profit-org.pdf.

It is open to a voluntary non-profit making organisation to ask Revenue, under section 959N Taxes Consolidation Act 1997, to exclude it from the obligation to deliver a return of income.  This might apply if, for example, the organisation was no longer in receipt of taxable income.  The request for an exclusion should be sent to the Revenue branch or division dealing with the organisation’s affairs.  The exclusion takes effect when a Revenue officer delivers a notice in writing to a person stating that it is excluded from the obligation to deliver a return. 

The exclusion applies for the period specified in the notice or until the occurrence of an event specified in the notice.  If the organisation received taxable income in the future and thereby became a “chargeable person” again, it would be required to deliver a return.  Any exclusion under section 959N does not remove that person’s obligation to make a capital gains tax return, if applicable.