Dáil Éireann Debate, Tuesday - 23 March 2004
29 Mr. Costello asked the Minister for Finance the reasons he felt unable to respond to the case made by the Gaelic Players Association for the introduction of a special tax allowance for high performance amateur sportspersons in order to recognise their contribution to society; and if he will make a statement on the matter. [8922/04]
Amharc ar fhreagra162 Mr. O’Connor asked the Minister for Finance the contacts he has had with the Gaelic Players Association in respect of the concerns it expressed about a taxation allowance for high performance amateur sportspersons; his views on the matter; the actions he proposes to take; and if he will make a statement on the matter. [8574/04]
Amharc ar fhreagraI propose to take Questions Nos. 29 and 162 together.
The Gaelic Players Association made representations to me and my Department both by letter and at a number of meetings in respect of the introduction of special tax arrangements for elite amateur sportspersons which would be of benefit to their members. The Gaelic Players Association whose members are not paid in respect of their direct participation in gaelic games proposed a scheme of annual tax credits for elite amateur sportspersons who are resident in the State. As Deputies are also aware this proposal was the subject of considerable discussion during both Committee and Report Stages of this year's Finance Bill. The proposal envisaged that a tax credit of €2,000 would be used against the person's non-sport income since being amateurs, they do not have income arising directly from the sport itself.
Agreeing to the introduction of such a measure would simply result in the taxpayer subsidising certain amateur sportspersons when their own organisations are unwilling to do so. That is the nub of the matter. As I have said on a number of occasions, over the years the needs of GAA players have often been neglected and it was shameful that it was only in recent times that players' concerns had been heard. The GPA is to be complimented on its role in that regard. However, the provision of a new tax credit for each player in recognition of the efforts of GAA players is an entirely different matter. The GPA argument appears to be that because the GAA refuses to pay players for participation in the games, or even reimburse them adequately for legitimate expenses incurred directly as a result of their involvement in games and training sessions, the Government, that is, the taxpayer, should pick up the bill. It is not an argument with which I can agree under any circumstances.
The proposed tax credit of €2,000 per annum per sportsperson is more than the total tax credit available to a non-PAYE single person which stands at €1,520 while the PAYE tax credit itself of €1,040 is almost half of what the GPA proposes be granted to a select group of players. A tax credit of €2,000 is the equivalent of exempting €10,000 of income from tax for a standard rate taxpayer.
The Government has made substantial sums of money available to the GAA at national and local level for the development of facilities which provide the appropriate arenas in which these great national games are played. In the past two years alone the organisation has been allocated no less than €68 million in Exchequer funding, including €1.5 million a year in current funding for the governing body. I am not just referring to Government funding for Croke Park, in respect of which I took more than my fair share of criticism, but for a whole range of GAA facilities built with assistance under the sports capital programme which is administered by my colleague, the Minister for Arts, Sport and Tourism. The record shows that no Government has been as generous to Irish sport as this Administration. In addition, the GAA has also been exempt from income tax for the past 75 years, since 1928. This relief should not be overlooked by those seeking additional tax concessions.
If it was ever considered desirable to grant €2,000 per annum to all elite sportspersons, a direct grant mechanism would be a more appropriate and fairer measure. A tax credit would not benefit many elite athletes who due to the levels of commitment and time demands of their respective training regimes are often not in a position to hold down full time employment.
In seeking this €2,000 tax credit, the GPA has claimed there is discrimination in the tax code in the treatment of the players represented by them and certain professional athletes. This is not the case. Two years ago, I introduced a scheme of tax relief for certain professional and semi-professional sportspersons which was given by way of a repayment of tax which could be claimed in the year in which the sportsperson retired from active participation in the sport. The relief relates solely to direct sports income and not from sponsorship or other income. However, the position of GAA players vis-à-vis professional sportspersons that can avail of the retirement relief is quite different. In general, specific allowances or credits in the tax system are put in place to compensate taxpayers for necessary expenses incurred in the process of earning an income and not for expenses incurred while undertaking a voluntary activity.
Furthermore, the introduction of this credit would set an unwelcome precedent and would inevitably lead to other voluntary workers demanding a similar credit on equally supportable grounds. If these sportspersons were to get a special tax credit to acknowledge their expenses relating to the activity and their contribution to the community it would be near impossible not to extend this to other categories of individuals who give of their time and incur expenses in a wide variety of community, youth and other voluntary work. Many of the voluntary and charitable organisations to which they contribute are far less likely to be able to meet expenses of these individuals than the GAA can.
