Finance Act 2013
|
Chapter 4 Income Levy, Income Tax, Corporation Tax and Capital Gains Tax | ||
|
Donations to approved bodies. |
19.— (1) The Principal Act is amended in section 848A— | |
(a) in subsection (1)(a) by deleting the definition of “appropriate certificate”, | ||
(b) in subsection (1)(a) by inserting the following definitions: | ||
“ ‘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;”, | ||
(c) in subsection (1) by substituting the following for paragraph (b): | ||
“(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.”, | ||
(d) in subsection (1) by inserting the following after paragraph (b): | ||
“(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.”, | ||
(e) in subsection (2) by substituting “the provisions of subsection (4) or (9),” for “the provisions of subsection (4), subsection (7) or subsection (9),”, | ||
(f) in subsection (3)(e) by substituting the following for subparagraphs (ii) and (iii): | ||
“(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.”, | ||
(g) in subsection (3A) by substituting the following for paragraph (a): | ||
“(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.”, | ||
(h) in subsection (6)— | ||
(i) by deleting “or in a year of assessment”, and | ||
(ii) by substituting “amount” for “amounts”, | ||
(i) by deleting subsections (7) and (8), | ||
(j) by substituting the following for subsection (9): | ||
“(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.”, | ||
(k) by inserting the following after subsection (9A): | ||
“(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.”, | ||
(l) in subsection (10) by substituting “annual certificate or enduring certificate, as the case may be,” for “appropriate certificate”, and | ||
(m) in subsection (11) by substituting “annual certificate or enduring certificate, as the case may be,” for “appropriate certificate”. | ||
(2) Schedule 25B to the Principal Act is amended by deleting “Reference Number 52” and the matter set out opposite that reference number. | ||
(3) This section shall apply as respects a relevant donation (within the meaning of section 848A of the Principal Act) made on or after 1 January 2013. |