Warning over axing artists' tax breaks

Maintaining tax breaks for artists is essential to keeping internationally-renowned writers, painters and performers in Ireland as well as encouraging new talent in the country, it was claimed today.

Members of the Arts Council appeared before the Oireachtas Committee for Finance and the Public Service to urge the Government to maintain the artists’ tax exemption scheme in its entirety.

The system, which allows artists, musicians and writers to avoid paying income tax on the sale of their works, is currently under review.

Arts Council chairwoman Olive Braiden, director Mary Cloake and writer John McGahern made presentations at a meeting which had been postponed for two weeks following the death of the council’s deputy chairman, Wexford Festival Opera chief Jerome Hynes.

Ms Braiden told the Oireachtas Committee there were many reasons for opposing the removal of the exemption.

“This Government, and others over the years, have had as a stated policy to provide for the support of artists and the arts within the state to enhance the public good.

“The artists’ exemption scheme is an instrument designed to further this policy of Government support for Irish artists.

“If the exemption was withdrawn, a situation would be created where there would be pressure on the exchequer to replace the income as would be lost.

“The choice would be stark: either supply from state resources such income as the market now provides, or lose entirely or in part to the art world or other jurisdictions a considerable number of artists,” she said.

Ms Braiden also challenged claims that the tax breaks benefited rich artists, particularly those in the music business.

“The artists’ exemption scheme is not a ‘rich man’s relief’ as has been presented in some quarters.

“The greatest number of its beneficiaries struggle for financial viability on a year-on-year basis.

“This is true of relatively unknown beneficiaries, as well as certain of Ireland’s most internationally renowned and critically acclaimed artists.”

Ms Braiden said it was important for Ireland to have world famous artists, writers and performers such as Marion Keyes, Seamus Heaney, the Corrs, Irvine Welsh, Jim Sheridan, Roddy Doyle and U2.

Their presence not only gave Ireland a global perspective, but it also improved local infrastructure in artistic management and technical expertise, she said.

And she warned against introducing a cap to the scheme, which she said might drive out artists who had commercial success early in their careers.

Council director Mary Cloake said more than half the beneficiaries of the scheme had average earnings of less than half the minimum wage.

“Of the 2% who are considered high earners, most of whom are in popular music and writing, much of their income is from foreign earnings.”

And she said capping the tax breaks would effectively prevent commercially successful artists from working in Ireland.

“We will not gain additional tax revenues – we will lose the contribution these earnings make to the economy, and more importantly, the jobs and the artistic know-how that the work of successful artists bring to Ireland,” she told the committee.