Dáil Éireann díospóireacht -
Wednesday, 5 Jun 1996

Vol. 466 No. 4

Written Answers. - Charitable Organisations.

Trevor Sargent

Ceist:

82 Mr. Sargent asked the Minister for Finance the number of applications for charitable status that the Revenue Commissioners received during his term as Minister for Finance; the number of decisions reached on foot of these applications; and the number of organisations granted charitable status during this period. [11547/96]

Trevor Sargent

Ceist:

83 Mr. Sargent asked the Minister for Finance whether he has satisfied himself with the degree of openness, transparency and accountability that applies to the granting of charitable status by the Revenue Commissioners. [11548/96]

Trevor Sargent

Ceist:

84 Mr. Sargent asked the Minister for Finance the number of appeals currently before the Revenue Commissioners in respect of applications for charitable status that have been refused. [11549/96]

Trevor Sargent

Ceist:

85 Mr. Sargent asked the Minister for Finance the specific reasons of confidentiality that are cited by the Revenue Commissioners as precluding them from publishing a schedule of all organisations that have been granted tax relief through the operation of the charitable status provisions. [11550/96]

Trevor Sargent

Ceist:

86 Mr. Sargent asked the Minister for Finance whether the reasons of confidentiality that preclude the Revenue Commissioners from publishing details of the granting of charitable status to trusts set up by individual persons in unique personal circumstances are the same as those applying to household name national voluntary organisations; his views on whether this is satisfactory from a public policy point of view; and if he will make a statement on the matter. [11551/96]

Trevor Sargent

Ceist:

87 Mr. Sargent asked the Minister for Finance whether organisations that have been granted charitable status and which publicly advertise the fact are breaking the rules of confidentiality which the Revenue Commissioners choose to apply to themselves in these circumstances. [11552/96]

Trevor Sargent

Ceist:

88 Mr. Sargent asked the Minister for Finance whether there are cases where the Revenue Commissioners require or oblige persons or organisations who have been granted charitable status to withhold from the public the fact of this status has been granted. [11553/

Trevor Sargent

Ceist:

95 Mr. Sargent asked the Minister for Finance whether there are circumstances where the Revenue Commissioners advise organisations or individuals trusts which have been granted charitable status to keep the fact of such tax relief having been granted out of the public domain; if so, the circumstances under which such a request may be made; and if he will make a statement on the matter. [11626/96]

Minister for Finance (Mr. Quinn)

It is proposed to take Questions Nos. 82, 83, 84, 85, 86, 87, 88 and 95 together.

I should explain that the Office of the Revenue Commissioners has a narrow function in relation to charities, that is the consideration of applications from bodies of persons or trusts claiming exemption from tax on the basis that they are established for charitable purposes only. It has no wider regulatory function. General regulation of charitable bodies is the responsibility of my colleague, the Minister for Justice. In this regard the Deputy will be aware that there is a commitment in the Government policy agreement to reform the law relating to the administration and regulation of charities along the lines of the report of the Committee on Fund-raising Activities for Charitable and Other Purposes. That report included recommendation that organisations raising funds for charitable and other purposes be required to register with a registration authority. I understand from the Minister that substantial progress is being made on the preparations of proposals for reform and that these will be placed before Government in due course.

There are a number of specific statutory provisions that place confidentiality obligations on the Revenue Commissioners. In addition, it is a fundamental principle of Revenue's Charter of Taxpayer Rights, which has been so important in promoting voluntary compliance with tax obligations, that each taxpayer is entitled to confidentiality in dealing with Revenue. These restrictions which bind the Office of the Revenue Commissioners regarding confidentiality do not bind the person involved — it is purely a matter for them to divulge to third parties information about their own tax affairs if they so wish. The Revenue Commissioners have informed me that they do not require, oblige or advise persons who have been granted charitable exemption for tax purposes not to disclose that fact to the public.

The Office of the Revenue Commissioners determines whether a body of persons or trust is established for charitable purposes only having regard to the relevant legislation and judicial decisions. There is a comprehensive application process which must be gone through and stringent conditions apply to any exemptions granted. The considerations which are taken into account in deciding cases and the requirements which must be fulfilled by applicants are set out in Information Note CHY 1 entitled Reliefs from Tax on Income and Property of Charities, a copy of which has been placed in the Oireachtas Library. I am satisfied with the assurances of the Revenue Commissioners that the current arrangements are operating fairly, and that they are applied to all applicants equally. Where an application for exemption is refused by the office, there is a statutory right of appeal against the refusal to the independent appeal commissioners and ultimately, to the courts. At this point, there are three such cases at different stages within the appeal process.

During my term as Minister for Finance, 539 applications for exemption from tax were received by the Office of the Revenue Commissioners and 348 such exemptions were granted.

I would have no objection in principle to the introduction of a statutory provision that would authorise the Revenue Commissioners to publish a list of persons to whom they had accorded the relevant tax exemption. It would be important, however, that the limitations of such a listing were clearly understood. This matter is, therefore, only one aspect of the wider question of registration of charities to which I referred. I will keep the tax aspect under review in that context.