Revenue Commissioners

Wednesday, 3 February 2021

Questions (169)

Paul Murphy

Question:

169. Deputy Paul Murphy asked the Minister for Finance if donations to non-SIPO-registered far-right political entities through online crowdfunding platforms are counted by the Revenue Commissioners as taxable income; the income that has been declared to the Revenue Commissioners by non-SIPO-registered far-right political entities since 2016; the amount the Revenue Commissioners have collected from taxable income in the form of donations to non-SIPO-registered far-right political entities since 2016; the initiatives which have been or are being taken by the Revenue Commissioners to collect any such tax; and if he will make a statement on the matter. [5034/21]

View answer

Written answers

Minister for Finance

I am advised by Revenue that the question as to whether income from donations received by political entities is taxable or not will depend upon the nature of the political entity and the activities that it is engaged in. If the political entity is considered to be carrying on a trade, such income may be regarded as part of its trading income and could be taxable. Typically, for activities to constitute trading there should be an element of commerciality and the intention to make a profit.

Where an individual or a company makes a donation to a political entity and does not receive any goods or services in return, they would generally not be regarded as trading. Where the political entity is not trading, the income from donations would not be taxable. However to the extent that the income from donations is used to generate taxable income any such income will be taxed in the normal manner. Political entities are treated in the same manner under the tax code, regardless of their political orientation.

I am advised that Revenue does not separately identify or categorise taxpayers based on their political orientation and therefore it is not possible to provide information of the nature sought by the Deputy.