Finance Act, 2002
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Donations to certain sports bodies. |
41.—(1) Chapter 36 of the Principal Act is amended by inserting the following section after section 847 (inserted by the Finance Act, 2001 ): | |
“847A.—(1) In this section— | ||
‘Acts’ means— | ||
(a) the Tax Acts, | ||
(b) the Capital Gains Tax Acts, and | ||
(c) the Value-Added Tax Act, 1972 and the enactments amending or extending that Act, | ||
and any instruments made thereunder; | ||
‘appropriate certificate’, in relation to a relevant donation by a donor who is an individual (other than an individual referred to in subsection (9)), means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains— | ||
(a) statements to the effect that— | ||
(i) the donation satisfies the requirements of subsection (5), and | ||
(ii) the donor has paid or will pay to the Revenue Commissioners income tax of an amount equal to income tax at the standard rate or the higher rate or partly at the standard rate and partly at the higher rate, as the case may be, for the relevant year of assessment on the grossed up amount of the donation, but not being— | ||
(I) income tax which the donor is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which the donor is liable to make to any other person, or | ||
(II) appropriate tax within the meaning of Chapter 4 of Part 8, | ||
(b) a statement specifying how much of the grossed up amount referred to in paragraph (a)(ii) has been or will be liable to income tax at the standard rate and the higher rate for the relevant year of assessment, and | ||
(c) the identifying number, known as the Personal Public Service Number (PPSN) of the donor; | ||
‘approved project’ means a project in respect of which the Minister has given a certificate under subsection (4), which certificate has not been revoked under that subsection; | ||
‘approved sports body’ means a body which is in possession of— | ||
(a) a certificate from the Revenue Commissioners stating that in their opinion the body is a body of persons to which section 235 applies, and | ||
(b) a valid tax clearance certificate, | ||
but does not include a body to whom the Revenue Commissioners have given a notice under section 235(1); | ||
‘Minister’ means the Minister for Tourism, Sport and Recreation; | ||
‘project’, in relation to an approved sports body, means one or more of the following: | ||
(a) the purchase, construction or refurbishment of a building or structure, or part of a building or structure, to be used for sporting or recreation activities provided by the approved sports body, | ||
(b) the purchase of land to be used by the approved sports body in the provision of sporting or recreation facilities, | ||
(c) the purchase of permanently based equipment (excluding personal equipment) for use by the approved sports body in the provision of sporting or recreation facilities, | ||
(d) the improvement of the playing pitches, surfaces or facilities of the approved sports body, and | ||
(e) the repayment of, or the payment of interest on, money borrowed by the approved sports body on or after 1 May 2002 for any of the purposes mentioned in paragraphs (a) to (d); | ||
‘relevant accounting period’, in relation to a relevant donation made by a company, means the accounting period in which that donation is made by the company; | ||
‘relevant donation’ means a donation which satisfies the requirements of subsection (5) and takes the form of the payment by a person (in this section referred to as the ‘donor’) of a sum or sums of money amounting to at least €250 to an approved sports body which is made— | ||
(a) where the donor is an individual, in a year of assessment, and | ||
(b) where the donor is a company, in an accounting period, | ||
but where an accounting period of a company is less than 12 months in length the amount of €250 shall be proportionately reduced; | ||
‘relevant year of assessment’, in relation to a relevant donation made by an individual, means the year of assessment in which that donation is made by the individual; | ||
‘tax clearance certificate’ shall be construed in accordance with subsection (3). | ||
(2) For the purposes of this section and in relation to a donation by a donor who is an individual (other than an individual referred to in subsection (9)), references to the grossed up amount are to the amount which after deducting income tax at the standard rate or the higher rate or partly at the standard rate and partly at the higher rate, as the case may be, for the relevant year of assessment leaves the amount of the donation. | ||
(3) (a) Where a body which is in compliance with the obligations imposed on it by the Acts in relation to— | ||
(i) the payment or remittance of any taxes, interest or penalties required to be paid or remitted under the Acts to the Revenue Commissioners, and | ||
(ii) the delivery of any returns required to be made under the Acts, | ||
applies to the Collector-General in that behalf, the Collector-General shall issue to the body a certificate (in this section referred to as a ‘tax clearance certificate’) for the purposes of this section stating that the body is in compliance with those obligations. | ||
(b) Subsection (5) to (9) of section 1094 shall apply to an application for a tax clearance certificate under this subsection as they apply to an application for a tax clearance certificate under that section. | ||
(4) (a) The Minister, on the making of an application by an approved sports body in advance of the undertaking by that body of a project, may give a certificate to that body stating that the project to be undertaken by that body may be treated as an approved project for the purposes of this section. | ||
(b) An application under this subsection shall be in such form and contain such information as the Minister may direct. | ||
(c) The Minister may, by notice in writing given to the body, revoke the certificate given in respect of a project under paragraph (a), and the project shall cease to be an approved project as respects any donations made to the body after the date of the Minister's notice. | ||
(d) The Minister shall not give a certificate to any body in respect of a project under paragraph (a) if the aggregate cost of the project is, or is estimated to be, in excess of €40,000,000. | ||
(5) A donation shall satisfy the requirements of this subsection if— | ||
(a) it is made to the approved sports body for the sole purpose of funding an approved project, | ||
(b) it is or will be applied by the approved sports body for that purpose, | ||
(c) apart from this section, it is neither deductible in computing for the purposes of tax the profits or gains of a trade or profession nor an expense of management deductible in computing the total profits of a company, | ||
(d) it is not a relevant donation to which section 848A applies, | ||
(e) it is not subject to a condition as to repayment, | ||
(f) neither the donor nor any person connected with the donor receives, either directly or indirectly, a benefit in consequence of making the donation, including, in particular, a right to membership of the approved sports body or a right to use the facilities of that body, | ||
(g) it is not conditional on or associated with, or part of an arrangement involving, the acquisition of property by the approved sports body, otherwise than by way of gift, from the donor or a person connected with the donor, and | ||
(h) in the case of a donation made by an individual, the individual— | ||
(i) is resident in the State for the relevant year of assessment, | ||
(ii) has (except in the case of an individual referred to in subsection (9)) given an appropriate certificate in relation to the donation to the approved sports body, and | ||
(iii) has (except in the case of an individual referred to in subsection (9)) paid the tax referred to in such appropriate certificate and is not entitled to claim a repayment of that tax or any part of that tax. | ||
(6) Where it is proved to the satisfaction of the Revenue Commissioners that a person has made a relevant donation, subsection (7), (9) or (11), as the case may be, shall apply. | ||
(7) Where a company makes a relevant donation, other than a relevant donation to which subsection (18) applies, then, for the purposes of corporation tax, the amount of that donation shall be treated as— | ||
(a) a deductible trading expense of a trade carried on by the company in, or | ||
(b) an expense of management deductible in computing the total profits of the company for, | ||
the relevant accounting period. | ||
(8) A claim by a company under this section shall be made with the return required to be delivered by it under section 951 for the relevant accounting period. | ||
(9) (a) Where a relevant donation, other than a relevant donation to which subsection (18) applies, is made by an individual who is a chargeable person (within the meaning of Part 41) for the relevant year of assessment, then— | ||
(i) the amount of the donation shall be deducted from or set off against any income of the individual chargeable to income tax for that year of assessment and tax shall, where necessary, be discharged or repaid accordingly, and | ||
(ii) the total income of the individual or, where the individual's spouse is assessed to income tax in accordance with section 1017, the total income of the spouse shall be calculated accordingly. | ||
(b) For the purposes of paragraph (a), any such deduction or set-off shall not be taken into account in determining the net relevant earnings (within the meaning of section 787) of the individual or, as the case may be, the individual's spouse for the relevant year of assessment. | ||
(10) Where a relevant donation is made by an individual who is an individual referred to in subsection (9), a claim under this section shall be made with the return required to be delivered by that individual under section 951 for the relevant year of assessment. | ||
(11) Where a relevant donation, other than a relevant donation to which subsection (18) applies, is made by an individual who is not an individual referred to in subsection (9), the Tax Acts shall apply in relation to the approved sports body to which that donation is made as if— | ||
(a) the grossed up amount of the donation were an annual payment which was the income of that body received by it under deduction of tax, in the amounts and at the rates specified in the statement referred to in paragraph (b) of the definition of ‘appropriate certificate’, for the relevant year of assessment, and | ||
(b) the provisions of the Tax Acts which apply in relation to a claim to repayment of tax applied in relation to any claim to repayment of such tax by that body; | ||
but, if the total amount of the tax referred to in paragraph (b) of the definition of ‘appropriate certificate’ is not paid, the amount of any repayment which would otherwise be made to that body in accordance with this section shall not exceed the amount of tax actually paid by that individual. | ||
(12) The details contained in an appropriate certificate shall be given by the approved sports body to the Revenue Commissioners in an electronic format approved by the Revenue Commissioners in connection with the making of a claim to repayment of tax to which subsection (11)(b) refers and, where those details are so given, those details shall be accompanied by a declaration made by the approved sports body, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that those details are correct and complete. | ||
(13) Where the Revenue Commissioners are satisfied that an approved sports body does not have the facilities to give the details contained in an appropriate certificate in the electronic format referred to in subsection (12), such details shall be given in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the approved sports body to the effect that the claim is correct and complete. | ||
(14) Every approved sports body, when required to do so by notice in writing from the Minister, shall within the time limited by the notice prepare and deliver to the Minister a return containing particulars of the aggregate amount of relevant donations received by the body in respect of each approved project. | ||
(15) Where any question arises as to whether for the purposes of this section a project is an approved project, or a donation is a relevant donation, the Revenue Commissioners may consult with the Minister. | ||
(16) For the purposes of a claim to relief under this section, but subject to subsection (17), an approved sports body shall, on acceptance of a relevant donation, give to the person making the relevant donation a receipt which shall— | ||
(a) contain a statement that— | ||
(i) it is a receipt for the purposes of this section, | ||
(ii) the body is an approved sports body for the purposes of this section, | ||
(iii) the donation in respect of which the receipt is given is a relevant donation for the purposes of this section, and | ||
(iv) the project in respect of which the relevant donation has been made is an approved project, | ||
(b) show— | ||
(i) the name and address of the person making the relevant donation, | ||
(ii) the amount of the relevant donation in both figures and words, | ||
(iii) the date the relevant donation was made, | ||
(iv) the full name of the approved sports body, | ||
(v) the date on which the receipt was issued, and | ||
(vi) particulars of the approved project in respect of which the relevant donation has been made, | ||
and | ||
(c) be signed by a duly authorised official of the approved sports body. | ||
(17) An approved sports body shall not be required to give a receipt under subsection (16) to a donor— | ||
(a) who is an individual but who is not an individual to which subsection (9) applies, or | ||
(b) in respect of a relevant donation to which subsection (18) applies. | ||
(18) Relief under this section shall not be given in respect of a relevant donation which is made at any time to an approved sports body in respect of an approved project if, at that time, the aggregate of the amounts of that relevant donation and all other relevant donations made to the approved sports body in respect of the approved project at or before that time exceeds €40,000,000. | ||
(19) Where relief under this section has been granted in respect of a relevant donation and— | ||
(a) that donation has not been used by the sports body concerned for the purpose of undertaking the approved project concerned, or | ||
(b) which relief is otherwise found not to have been due, | ||
section 235(2) shall not apply to the amount of that relevant donation. | ||
(20) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by them.”. | ||
(2) This section applies as on and from 1 May 2002. |