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"Schools to benefit from new rules on donations to charity," says McGrath
Deputy Paul McGrath welcomed the new measures introduced in the Finance Bill 2001 whereby donations to schools can now attract tax relief.
"This is the first time that Primary and Second Level Schools have been included for such a scheme and it is very welcome," says Deputy Paul McGrath.
"The scheme will come into effect in April and will work in such a way that if a taxpayer makes a donation to a school, then that gift is allowable for tax purposes.
Examples:
- If a taxpayer on the 20 per cent rate makes a donation of £300 to the local school the Revenue Commissioners will refund £75 to that school making the donation up to £375.
- If a taxpayer on the 20 per cent rate makes a donation of £200 the Revenue Commissioners will make a refund of £50 making the donation up to £250.
- If a taxpayer on the 42 per cent tax rate make a donation of £580, the Revenue Commissioners will refund a further £420 making the donation up to £1,000.
- If a taxpayer on the 42 per cent tax rate makes a donation of £200 to his local school the Revenue Commissioners will refund a further £144.82 to that school bringing the donation up to £344.82.
- If a taxpayer who pays tax at the 42 per cent rate makes a donation of £290 to his local school, the Revenue Commissioners will refund a further £210 to that school making that donation up to £500.
"The tax refunds are made directly to the school at the end of the tax year and can be used at the discretion of the school authorities.
"Tax payers on the self-assessment basis can claim the relief on their accounts and corporate donations can be treated as a trading expense.
"The minimum donation in any one year has been set at £200 and there is no maximum level!
"I welcome this measure," says Deputy Paul McGrath, "and I hope that it will help provide much needed finance to our local schools.
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