asked the Minister for Finance if he is aware that the Revenue authorities refused to grant exemption from entertainment tax to a committee of local residents at Aghada, Co. Cork, for a concert, the proceeds of which were to be devoted to a fund for rendering the place attractive for visitors, a purpose purely philanthroplc, and whether he will see that the tax paid will be refunded to the Committee.
Ceisteanna—Questions. Oral Answers. - Entertainment Tax on Co. Cork Concert.
I am aware that exemption from payment of entertainments duty was refused in respect of a concert held in aid of the Aghada Improvement Fund.
In his application for the grant of exemption the honorary secretary of the Aghada Improvement Committee stated that the objects of the Committee, which is composed of a group of local residents, were "to render the surroundings more attractive by the provision of seats for visitors and a general cleaning up."
If an entertainment is to be entitled to relief on philanthropic or charitable grounds, the following conditions must be fulfilled:—
(1) The proceeds must be devoted to purposes which are unmistakably philanthropic or charitable.
(2) The promoters of the entertainment must be disinterested— that is, they must not be in a position to benefit directly or indirectly from the expenditure of the proceeds of the entertainment.
The Collector of Customs and Excise at Cork, whose duty it was to deal with this application, was not satisfied, after inquiry into the circumstances, that the conditions for exemption were fulfilled, and the application was refused by him accordingly.
In these circumstances I am unable to authorise refund of the duty.
Can the Minister state which of these conditions was infringed?
Both, I think.
Is the Minister aware that the committee consisted of the parish priest, the curate and five local residents who had nothing whatsoever to gain financially by any development which would be done in Aghada district and that it was done purely to render the place somewhat attractive to tourists?
I do not see how a thing like that could be regarded as philanthropic or charitable. Even supposing for the moment that nobody could indirectly benefit and that no shopkeepers or anyone who would benefit by the attraction of tourists was on the committee, it is a definite business proposition for the district and it is not philanthropic or charitable work. I do not think that the encouragement of tourists could be put upon that basis.
Does the Minister not know that these visitors do not remain for any extended period and that there is no financial benefit arising out of their visits?
For the sake of argument I shall admit that.
Can the Minister define the word "philanthropic"?
I would not like to do so at short notice, but I do not think that we can regard work of tourist development as work that is either philanthropy or charity.
asked the Minister for Finance if he is aware that the honorary secretary, Aghada Development Committee, purchased from the Collector of Customs and Excise, Cork, stamped tickets, the total tax on which amounted to £5 16s. 8d.; that he returned to the collector unsold tickets, the tax on which amounted to £2 9s. 7d.; that instead of receiving same he got a cheque for £1 14s. 8d.; whether he will state why the deduction of 14s. 11d. was made, and will he instruct the collector to refund this amount to the honorary secretary.
I am aware of the particulars stated in the question. Under Section 12 of the Stamp Duties Management Act, 1891 (which by Section 2 (3) of the Finance (New Duties) Act, 1916, is made applicable to the stamps used for denoting entertainments duty), the Revenue Commissioners may, if they think fit, make an allowance in certain circumstances for unused stamps.
The deduction of 14/11 referred to by the Deputy was made in respect of a broken series of entertainments duty tickets which, in the opinion of the Commissioners, were not eligible for allowance.
I am unable to authorise a refund of the amount.
Is the Minister aware that the usual regulations governing these matters provide that the tickets must be torn in halves? These tickets were handed up without being torn and they were clearly unused tickets.
There is a regulation or practice in the administration of this particular duty to safeguard that, and as a rule allowance is only made where the tickets have been taken off a pad in serial order and where stamps presented for allowance afterwards are in serial order and represent the remains of a pad. Where not in serial order the general view is that there is doubt as to whether they were used or not and the practice is not to allow for them.
Apparently the manner in which the Revenue Commissioners are using their powers in this matter is certainly nothing short of a scandal. I beg to give notice that I shall raise this question on the adjournment.