Taxes Consolidation Act, 1997 (Number 39 of 1997)
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848A Donations to approved bodies.
(1) (a) In this section—
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“appropriate certificate”, in relation to a relevant donation by a donor who is an individual, other than an individual referred to in subsection (7), to an approved body, means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains—
(i) statements to the effect that—
(I) the donation satisfies the requirements of subsection (3), 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—
(A) 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
(B) appropriate tax within the meaning of Chapter 4 of Part 8,
(ii) a statement specifying how much of the grossed up amount referred to in subparagraph (i)(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
(iii) the identifying number, known as the Personal Public Service Number (PPSN), of the donor;
<[13]
[14]>
“annual certificate”, in relation to a relevant donation to an approved body by a donor who is an individual, means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains—
(i) statements to the effect that—
(I) the donation satisfies the requirements of subsection (3),
(II) the donor has paid or will pay to the Revenue Commissioners income tax of an amount equal to income tax at the specified rate for the relevant year of assessment on the grossed up amount of the donation, but not being—
(A) 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
(B) appropriate tax within the meaning of Chapter 4 of Part 8,
and
(III) the donor acknowledges that the provisions of subsection (9B) apply to a repayment of tax to an approved body,
and
(ii) the personal public service number of the donor,
and includes a certificate which has been renewed by the donor with the approved body in a manner approved by the Revenue Commissioners for the subsequent year of assessment;
“enduring certificate”, in relation to a relevant donation to an approved body by a donor who is an individual, means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains—
(i) the year of assessment from which the certificate applies,
(ii) statements to the effect that the donor is aware that—
(I) a donation made during the specified period (in this definition referred to as the “first specified period”) has to satisfy the requirements of subsection (3),
(II) income tax of an amount equal to income tax at the specified rate for the relevant year of assessment on the grossed up amount of a donation has been or will be paid to the Revenue Commissioners, but not being—
(A) 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
(B) appropriate tax within the meaning of Chapter 4 of Part 8,
and
(III) the donor acknowledges that the provisions of subsection (9B) apply to a repayment of tax to an approved body,
and
(iii) the personal public service number of the donor, and includes a certificate which has been renewed by the donor with the approved body in a manner approved by the Revenue Commissioners for the specified period immediately succeeding the first specified period;
“personal public service number” has the same meaning as in section 262 of the Social Welfare Consolidation Act 2005;
“specified period”, in relation to an enduring certificate, means the year of assessment from which the certificate applies and each of the 4 immediately succeeding years of assessment;
“specified rate” means 31 per cent;
<[14]
“approved body” means a body specified in Part 1 of Schedule 26A;
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“designated securities” means—
(i) shares (including stock), and
(ii) debentures,
of a class quoted on a recognised stock exchange;
<[5]
“relevant accounting period” in relation to a relevant donation means the accounting period in which the relevant donation is made;
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“relevant donation” [3]>means<[3][3]>, subject to subsection (3A),<[3] a donation which satisfies the requirements of subsection (3) 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 [2]>£200<[2][2]>€250<[2] to an approved body which is made—
(i) where the donor is a company, in an accounting period, and
(ii) where the donor is an individual, in a year of assessment;
<[6]
[6]>
“relevant donation” means, subject to subsection (3A), a donation which satisfies the requirements of subsection (3) and takes the form of the payment or the donation, as the case may be, by a person (in this section referred to as the “donor”) of either or both—
(i) a sum or sums of money, and
(ii) designated securities, valued at their market value at the time the donation is made,
amounting to, in aggregate, at least €250 to an approved body which is made—
(I) where the donor is a company, in an accounting period, and
(II) where the donor is an individual, in a year of assessment;
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“relevant year of assessment”, in relation to a relevant donation, means the year of assessment in which the relevant donation is made.
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(b) 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 (7)), 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.
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(b) For the purposes of this section and in relation to a donation by a donor who is an individual, references to the grossed up amount are to the amount which after deducting income tax at the specified rate for the relevant year of assessment leaves the amount of the donation.
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(ba) An annual certificate renewed by a donor in the manner referred to in the definition of “annual certificate” shall be deemed to contain the statements referred to in paragraph (i) of that definition.
(bb) An enduring certificate renewed by a donor in the manner referred to in the definition of “enduring certificate” shall be deemed to contain the statements referred to in paragraph (ii) of that definition.
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(c) This section shall be construed together with Schedule 26A.
(2) Where it is proved to the satisfaction of the Revenue Commissioners that a person has made a relevant donation [17]>the provisions of subsection (4), subsection (7) or subsection (9),<[17][17]>the provisions of subsection (4) or (9),<[17] as the case may be, shall apply.
(3) A donation will satisfy the requirements of this section if—
(a) it is not subject to a condition as to repayment,
(b) neither the donor nor any person connected with the donor receives a benefit in consequence of making the donation, either directly or indirectly,
(c) it is not conditional on or associated with, or part of an arrangement involving, the acquisition of property by the approved body, otherwise than by way of gift, from the donor or a person connected with the donor,
(d) subject to subsection (4)—
(i) it would not be deductible in computing for the purposes of corporation tax the profits or gains of a trade or profession, and
(ii) it would not be an expense of management deductible in computing the total profits of a company,
(e) in respect of a donation made by an individual, the individual—
(i) is resident in the State for the relevant year of assessment,
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(ii) has, except in the case of an individual referred to in subsection (7), given an appropriate certificate in relation to the donation to the approved body, and
(iii) has, except in the case of an individual referred to in subsection (7), 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.
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(ii) has given an annual certificate or, as the case may be, an enduring certificate in relation to the donation to the approved body, and
(iii) has, for the relevant year of assessment, paid the tax referred to in such annual certificate or enduring certificate, as the case may be, and is not entitled to claim a repayment of that tax or any part of that tax.
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(3A) (a) Notwithstanding any other provision of this section, where the aggregate of the amounts of all donations made by an individual in any year of assessment to an approved body or approved bodies with which the individual is associated is in excess of 10 per cent of the total income of the individual for that year of assessment, the amount of the excess shall not be treated as a relevant donation for the purposes of this section.
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(3A) (a) Notwithstanding any other provision of this section, where—
(i) the aggregate of the amounts of all donations made by an individual in any year of assessment to an approved body or approved bodies is in excess of €1,000,000, or
(ii) the aggregate of the amounts of all donations made by an individual in any year of assessment to an approved body or approved bodies with which the individual is associated is in excess of 10 per cent of the total income of the individual for that year of assessment,
the amount of the excess in each case shall not be treated as a relevant donation for the purposes of this section.
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(b) For the purposes of this subsection—
(i) an individual is associated with an approved body if, at the time the donation is made, the individual is an employee or member of, the approved body or another approved body which is associated with that approved body, and
(ii) an approved body is associated with another approved body if, at the time the donation is made, it could reasonably be considered that—
(I) any person or any group of persons or groups of persons having a reasonable commonality of identity has or have, or had the means or power, either directly or indirectly, to determine the activities carried on or to be carried on by both approved bodies, or
(II) any person or any group of persons or groups of persons having a reasonable commonality of identity exercises or exercise, or is or are able to exercise, control over the affairs of both approved bodies.
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(3B) Where—
(a) the Revenue Commissioners withdraw the authorisation of an approved body by a notice in writing in accordance with paragraph 7 of Part 3 of Schedule 26A, and
(b) (i) a company, or
(ii) an individual who is a chargeable person (within the meaning of Part 41A) and who for a year of assessment is entitled to deduct or set off the amount of a relevant donation made to an approved body against any income of the individual chargeable to income tax for that year of assessment,
makes a donation in good faith to the approved body in the period beginning on the date specified in the notice from which the withdrawal of the authorisation applies and has effect and ending on the date of the notice,
the donation, notwithstanding the withdrawal of the authorisation, shall, subject to this section, be deemed to be a relevant donation made to an approved body.
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(4) Where a company makes a relevant donation in any accounting period and claims relief from tax by reference thereto, the amount thereof shall, for the purposes of corporation tax, 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,
that accounting period.
(5) A claim by a company under this section shall be made with the return required to be delivered under [10]>section 951<[10][10]>Chapter 3 of Part 41A<[10] for the accounting period in which the relevant donation is made.
(6) Where a relevant donation is made by a donor in an accounting period of a company [20]>or in a year of assessment<[20] which is less than 12 months, the [21]>amounts<[21][21]>amount<[21] specified in the definition of “relevant donation” shall be proportionately reduced.
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(7) Where a relevant donation is made to an approved body in a year of assessment by an individual who is a chargeable person (within the meaning of [11]>Part 41<[11][11]>Part 41A<[11]) for the year of assessment, 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 the total income of the individual or, where the individual’s [8]>spouse<[8][8]>spouse or civil partner<[8] is assessed to income tax in accordance with [9]>section 1017<[9][9]>section 1017 or 1031C,<[9], the total income of the [8]>spouse<[8][8]>spouse or civil partner<[8] shall be calculated accordingly; but 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 [8]>spouse<[8][8]>spouse or civil partner<[8] for the year of assessment.
(8) Where a relevant donation is made to an approved body by an individual who is a chargeable person (within the meaning of [12]>Part 41<[12][12]>Part 41A<[12]) a claim under this section shall be made with the return required to be made by that individual under section 951 for the year of assessment in which the donation is made.
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(9) Where a donation is a relevant donation made by a donor who is an individual (other than an individual referred to in subsection (7)) to an approved body, the Tax Acts shall apply in relation to the approved body as if—
(a) the grossed up amount of the donation were an annual payment which was the income of the approved body received by it under deduction of tax, in the amounts and at the rates specified in the statement referred to in paragraph (ii) of the definition of “appropriate certificate” for the relevant year of assessment, and
(b) the provisions of those Acts which apply in relation to a claim to repayment of tax applied in relation to any claim to repayment of such tax by an approved body;
but, if the total amount of the tax referred to in paragraph (ii) of the definition of “appropriate certificate” is not paid, the amount of any repayment which would otherwise be made to an approved body in accordance with this section shall not exceed the amount of tax actually paid by the donor.
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(9) Where a donation is a relevant donation made to an approved body by a donor who is an individual, the Tax Acts shall apply in relation to the approved body as if—
(a) the grossed up amount of the donation were an annual payment which was the income of the approved body received by it under deduction of tax in the amount and at the specified rate of tax for the relevant year of assessment, and
(b) the provisions of those Acts which apply in relation to a claim to repayment of tax applied in relation to any claim to repayment of such tax by an approved body;
but, if the total amount of the tax referred to in paragraph (i) of the definition of “annual certificate” or paragraph (ii) of the definition of “enduring certificate”, as the case may be, is not paid, the amount of any repayment which would otherwise be made to an approved body in accordance with this section shall not exceed the amount of tax actually paid by the donor.
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(9A) Section 611 does not apply to a disposal of an asset, being a relevant donation for the purposes of this section, where—
(a) a claim for relief from tax, or
(b) a claim for repayment of tax,
is made under this section in respect of that relevant donation.
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(9B)Where a repayment of tax has been made to an approved body in accordance with this section, the amount of tax so repaid shall not be regarded as tax paid by the donor for the purposes of a repayment of tax to that donor under section 865 or any other provision of the Income Tax Acts.
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(10) The details contained in an [25]>appropriate certificate<[25][25]>annual certificate or enduring certificate, as the case may be,<[25] shall be given by the approved 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 (9)(b) refers and where it is so given it shall be accompanied by a declaration made by the approved body, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the details are correct and complete.
(11) Where the Revenue Commissioners are satisfied that an approved body does not have the facilities to give the details contained in an [26]>appropriate certificate<[26][26]>annual certificate or enduring certificate, as the case may be,<[26] in the electronic format referred to in subsection (10), 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 body to the effect that the claim is correct and complete.
(12) Section 764 shall apply as if subsection (1)(b) were deleted and subsection (2) shall be construed accordingly.
(13) Sections 88, 484, 485, 485A, 485B, 486, 486A and 767, subparagraphs (ii) and (iii) of subsection (1)(b), and subsection (3), of section 792 and section 848 are repealed.
(14) Where any body to which Part 2 or Part 3 of Schedule 26A relates has been approved or is the holder of an authorisation, as the case may be, under any enactment and, that approval or authorisation has not been withdrawn on the day prior to the coming into operation of this section, such body shall be deemed to be an approved body for the purposes of this section.
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[3]
Substituted by FA03 s21(1)(a). Applies as respects donations made on or after 6 February 2003.
[13]
Deleted by FA13 s19(1)(a). Applies as respects a relevant donation made on or after 1 January 2013.
[14]
Inserted by FA13 s19(1)(b). Applies as respects a relevant donation made on or after 1 January 2013.
[15]
Substituted by FA13 s19(1)(c). Applies as respects a relevant donation made on or after 1 January 2013.
[16]
Inserted by FA13 s19(1)(d). Applies as respects a relevant donation made on or after 1 January 2013.
[17]
Substituted by FA13 s19(1)(e). Applies as respects a relevant donation made on or after 1 January 2013.
[18]
Substituted by FA13 s19(1)(f). Applies as respects a relevant donation made on or after 1 January 2013.
[19]
Substituted by FA13 s19(1)(g). Applies as respects a relevant donation made on or after 1 January 2013.
[20]
Deleted by FA13 s19(1)(h)(i). Applies as respects a relevant donation made on or after 1 January 2013.
[21]
Substituted by FA13 s19(1)(h)(ii). Applies as respects a relevant donation made on or after 1 January 2013.
[22]
Deleted by FA13 s19(1)(i). Applies as respects a relevant donation made on or after 1 January 2013.
[23]
Substituted by FA13 s19(1)(j). Applies as respects a relevant donation made on or after 1 January 2013.
[24]
Inserted by FA13 s19(1)(k). Applies as respects a relevant donation made on or after 1 January 2013.
[25]
Substituted by FA13 s19(1)(l). Applies as respects a relevant donation made on or after 1 January 2013.
[26]
Substituted by FA13 s19(1)(m). Applies as respects a relevant donation made on or after 1 January 2013.
[27]
Inserted by FA14 s18(1)(a). Has effect from 1 January 2015 as respects an authorisation issued, whether before, on or after that date, under paragraph 2 of Part 3 of Schedule 26A.