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Section 848A Taxes Consolidation Act, 1997

Is your organisation already a registered charity or approved body?

While there is no legal framework for the registration of a charity in Ireland, the Charities Section of the Office of the Revenue Commissioners has a regularly updated database of organisations which have been granted charitable tax exemption.  The list is available on the Revenue Commissioner website. Have you checked that your organisation is included on the list?

If you have been issued a CHY number by the Charities Section but are not included on the list, make contact with them and investigate why.

If you are included on the list, the tax code provides exemptions for charities as follows:

  • Income Tax – Sections 207 and 208, Taxes Consolidation Act, 1997
  • Corporation Tax (in the case of companies) – Sections 76 and 78 Taxes Consolidation Act, 1997
  • Capital Gains Tax – Section 609, Taxes Consolidation Act, 1997
  • Deposit Interest Retention Tax (DIRT) – Section 266 Taxes Consolidation Act, 1997
  • Capital Acquisitions Tax – Sections 17, 22 and 76 of the Capital Acquisitions Taxes Consolidation Act 2003
  • Stamp Duty – Section 82, Stamp Duties Consolidation Act 1999
  • Dividend Withholding Tax – Chapter 8A, Part 6, Taxes Consolidation Act, 1997

Is your organisation seeking to become a registered charity or approved body?

If your organisation would like to apply for exemption, you must submit a completed application form to Charities Section, Office of the Revenue Commissioners. You will also have to submit a number of other documents including:

  • Copy of the Governing Instrument – in draft format for a charity being newly formed.
  • Statement of activities to date and plans for next 12 months, including any trading activities being undertaken/proposed.
  • Annual reports and other documentation, if applicable.
  • Latest Financial Statements
  • List of Names, addresses, occupations and PPS numbers of the Officers/Trustees/Directors.

Remember, an authorisation will not issue unless the applicant ‘charity’:

  • is a body of persons or trust established for charitable purposes only, and
  • applies its income for charitable purposes only, and
  • has been granted exemption from tax (i.e. assigned a Charity (CHY) number) by the Revenue Commissioners for a period of not less than two years prior to the date of application for authorisation.

Section 1003 of the Taxes Consolidation Act 1997

The current list of Approved Bodies under Section 1003 include:

  • the National Archives
  • the National Gallery of Ireland
  • the National Museum of Ireland
  • the National Library of Ireland
  • the Irish Museum of Modern Art
  • the Crawford Art Gallery Cork Limited

In addition, the Minister for Arts, Heritage and the Gaeltacht with the consent of the Minister for Finance, has the authority to approve further bodies for the purpose of the relief. Such additional bodies must be funded wholly or partly by the State or a public or local authority.

To avail of this scheme there are certain restrictions, including:

  • the open market value of the item/collection of items must be at least €150,000
  • in the case of a collection, at least one item in the collection must have a minimum value of €50,000.

For further information on Section 1003, contact the Department of Arts, Heritage and the Gaeltacht in order to obtain the application form and, where necessary, additional information. They will outline full details of the selection process and structure of relief available.

The Revenue Commissioners are required to compile and publish in their Annual Report the names, descriptions and values of the heritage items in respect of which relief is given in any calendar year.

Section 1003 in practice

In 2008, ten original colour illustrations by Harry Clarke (1889-1931) which were executed for Hans Christian Andersen’s ‘The Fairy Tales’ were presented to the National Gallery of Ireland.  The colour illustrations, all in pristine condition, were in a private collection since the 1920s. They appeared for sale in June 2008 as part of a special exhibition at The Fine Art Society in London, where they were purchased and presented as a gift to The Gallery by Lochlann & Brenda Quinn.

In 2011, NOBEL Laureate Seamus Heaney donated his personal literary notes to the National Library of Ireland. The archive included 16 bound notebooks, sheaves of manuscripts, early working drafts, corrections, rewrites and proofs of his poetry, as well as notebooks given to him and signed by his children as gifts. The archive joined those of Irish literary masters James Joyce and fellow Nobel Prize winner WB Yeats. Archives from writers Roddy Doyle, Colm Toibin and President Michael D Higgins are all housed in the National Library.

 

 

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