asked the Minister for Finance if he considers it appropriate that tax should be levied on investment income earned by non-profit community associations who use such income to run community halls and other community services; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Non-Profit Community Associations.
11.
If a community association or other body can satisfy the Revenue Commissioners that they are established for charitable purposes only, then their investment income will be exempt from taxation under section 333 of the Income Tax Act, 1967. Otherwise, they are subject to tax on that income in accordance with the general rules relating to the taxation of investment income. I would not favour relaxing these rules since that would represent a significant narrowing of the tax base.
Proinsias de Rossa
Is the policy of the Revenue Commissioners to make voluntary organisations of this nature aware of their rights under section 333?
The Revenue Commissioners in the nature of things tend to wait for application to be made to them, but when an application is made the Revenue Commissioners would make it clear to the applicant the conditions under which the applicant would fall to qualify under section 333.
It may or may not be in the Minister's brief to tell me this, but can he say whether a voluntary association must be registered as a charity in order to qualify or would it be sufficient for them to be registered as a limited company in trust, in this kind of trust company?
Subject to further correction on the matter, as I pointed out in the original reply, I do not think the form of association is particularly important. The test is whether the body are set up for charitable purposes only.