Gifts to non-Irish charities ‘to include tax relief’

THE State has been told by the European Commission it must give tax relief to donations and gifts made to non-Irish charities.

Workers and companies can claim relief on money they donate to charities registered in Ireland.

A range of overseas development agencies such as Gorta, universities and bodies such as the St Vincent de Paul benefit.

Last year donations by people paying PAYE cost the State €14.8 million and several million of euro more on corporate donations, the Department of Finance said.

Currently, the Government only allows tax relief for gifts to Irish charities of up to €254 a year for PAYE workers. However, under EU rules they must allow tax relief to any charity registered in the EU.

The Government could abolish tax relief on charitable donations altogether for Irish and all EU registered charities which would be allowed under union rules as it would not discriminate.

The European Taxation Commissioner, Laszlo Kovacs, has warned several countries to change their rules so as not to discriminate against charities based anywhere in the EU.

Some countries are afraid that it would facilitate rogue organisations, criminal gangs and money laundering.

However, the Commission said that they can check whether the assets and income of charities in other member states are only used for charitable purposes.