SENATE SPEECHES
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Finance Bill 2006 [Certified Money Bill]: Second Stage
28 March 2006

Senator Henry: I want to raise the issue of tax relief schemes which are of benefit to high income earners. The Minister rightly put a stop to those schemes which were causing unjust benefit to very high income earners in allowing them not to pay any income tax. In section 17, the Minister has included those who earn over €250,000 and who give donations to universities, cultural institutions and so forth. The provision will not come into play until 2007. The universities and the National Gallery believe that from then on, few will give money in excess of their income to cultural institutions or even a children's hospital.

The money, however, does no good to the high income earner but is of great value to the institutions to which it is given. The report prepared by the Department of Finance on tax relief on donations to charities recommended the retention of the provision. It rejected the limiting of deductions from such donations. The report stated the evidence to date does not suggest the Exchequer is duly exposed. It continued to recommend that the State should encourage a wider culture of giving.

That culture has started to develop. I am sure that it is an unfortunate oversight that this provision has been included in section 17. I ask the Minister for Finance to rectify it. Universities, the National Gallery and various hospitals are dependent on high value gifts from high earners. The earners get no benefit from it but the institutions gain a great deal.

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