All tax exemptions need regular review

TAX benefits are not for free. They have to be paid for by the taxpayer. Those receiving them need to show they are fulfilling a socially desirable goal.

Tax incentives (often to high earners) certainly need to reviewed on an annual basis. Tax exemptions to charities similarly need to be reviewed on a regular basis.

Approved charities are exempt from a wide variety of taxes. In general, exemptions include income tax, tax on bequests, DIRT, etc and these can represent a considerable financial benefit.

When approving organisations as charities, the Revenue Commissioners are, in effect, disbursing public money. This can amount to €60 million per annum. There can be good reason for the taxpayer subsidising such organisations. Most are doing work that is the responsibility of the State.

However, voluntary effort is diminishing, while paid employment is increasing.

Over the years, there have been calls for greater transparency and accountability on the part of approved charities. But nothing has happened. Regulation of these bodies remains lax. For several, ‘charitable purposes’ is something that employees have to defend because their livelihoods depend on it.

Donal O’Driscoll

33 Dargle Road

Blackrock

Co Dublin