Dáil Éireann Debate, Tuesday - 11 February 2014
140. Deputy Michael McGrath asked the Minister for Finance the amount of income tax forgone by the State in each year from 2010 to 2013 in respect of charitable donations; and if he will make a statement on the matter. [6247/14]
Amharc ar fhreagraSection 848A of the Taxes Consolidation Act 1997 (TCA) provides for a scheme of tax relief on donations to approved bodies. The list of approved bodies for the purposes of Section 848A, which includes eligible charities, bodies approved for education in the arts and eligible primary, secondary and third level institutions, is available on the Revenue website at www.revenue.ie.
For donations made pre-2013, the arrangements for allowing income tax relief varied depending on whether the donor was a PAYE-only taxpayer or a chargeable person subject to self-assessment. For a PAYE-only donor, the relief was given on a "grossed up" basis to the eligible charity or other approved body. The claim for refund was made by the eligible charity or approved body rather than by the PAYE-only donor. In the case of a self-assessed donor, that individual claimed the relief and there was no grossing up arrangement. For donations made after 1 January 2013, relief in all cases is payable to the charity at a blended rate of 31%.
The level of income tax relief on donations to charities and other approved bodies is as shown in the following table. The figures for 2012 and 2013 are available at the current time in respect of PAYE-only donors.
|
Year |
Estimated Cost of Tax Relief €M |
|
2010 |
50 |
|
2011 |
46.3 |
|
2012 |
25.1 (PAYE-only donors) |
|
2013 |
23.5 (PAYE-only donors) |
