Brendan Burgess
Founder
- Messages
- 55,609
Section 1003 of the Taxes Consolidation Act , 1997 deals with tax reliefs on Heritage Gifts.
In summary, a person who donates an item worth in excess of €150k to a cultural institution, gets a tax credit for 80% of the value of the item and can set that credit off against their liability for Income Tax, Capital Gains Tax or Capital Acquisitions Tax.
But there is what strikes me as a very odd clause in the Act:
(9) A person shall not be entitled to any refund of tax in respect of any payment on account of tax made in accordance with this section.
Is there any precedent for this in other areas of the tax code?
Is there any rationale for it?
If a self-employed consultant earns €400k and makes a donation of €150k, he does his tax return for the year and say he has a liability of €160k , he can set off €120k against this and pay over €40k.
But if the same consultant is in the HSE and paid via PAYE, he can't get a refund of the tax deducted.
It makes no sense to me, but there must have been some discussion which led to it being included in the Act.
In summary, a person who donates an item worth in excess of €150k to a cultural institution, gets a tax credit for 80% of the value of the item and can set that credit off against their liability for Income Tax, Capital Gains Tax or Capital Acquisitions Tax.
But there is what strikes me as a very odd clause in the Act:
(9) A person shall not be entitled to any refund of tax in respect of any payment on account of tax made in accordance with this section.
Is there any precedent for this in other areas of the tax code?
Is there any rationale for it?
If a self-employed consultant earns €400k and makes a donation of €150k, he does his tax return for the year and say he has a liability of €160k , he can set off €120k against this and pay over €40k.
But if the same consultant is in the HSE and paid via PAYE, he can't get a refund of the tax deducted.
It makes no sense to me, but there must have been some discussion which led to it being included in the Act.