Section 480A of the Taxes Consolidation Act 1997 provides for relief from income tax on retirement for certain income of certain sportspersons. The sportspersons who qualify are: athletes, badminton players, boxers, cricketers, cyclists, footballers, golfers, jockeys, motor racing drivers, rugby players, squash players, swimmers and tennis players. The earnings to which the relief applies are earnings from participation in the relevant sport such as prize money, performance fees etc., but not other earnings such as sponsorship fees, advertisement income or income from endorsements. The relief takes the form of a deduction from the sportsperson's participation earnings of an amount equal to 40 per cent of those earnings for any 10 tax years for which the sportsperson was resident in the State, starting with the tax year 1990/91.
The relief is given by way of repayment of tax and is to be claimed within four years from the end of the tax year in which the sportsperson ceases permanently to be engaged in that sport provided he or she is resident in the State in that year. The relief is withdrawn if the person subsequently recommences in that sport, though this does not prevent a further claim for the relief if and when the sportsperson finally retires at a later time.
I am informed by the Revenue Commissioners that the estimated cost to the Exchequer of the tax relief on retirement for qualifying sportspersons is set out in the following table for the tax years 2005 to 2009 inclusive. 2009 is the latest year for which the necessary detailed data is available.
Retirement relief for Qualifying Sportspersons
Year
|
Estimated cost to the Exchequer €m
|
2005
|
0.3
|
2006
|
0.2
|
2007
|
0.2
|
2008
|
0.2
|
2009
|
0.2
|
The information is not captured in such a way as to provide a basis for compiling a breakdown of the estimated cost of the relief by reference to sports code. Even if such a breakdown were available the obligation of the Revenue Commissioners to observe confidentiality in relation to the tax affairs of individual taxpayers or small groups of taxpayers would preclude them from providing it. In circumstances where a sportsperson has been an employee then he or she will be entitled to avail of the same reliefs as are available to all other employees on retirement in addition to the section 480A relief described earlier.