# Foundation attacks 'unfair' tax regime

- Link: https://fundraising.co.uk/2008/02/05/foundation-attacks-039unfair039-tax-regime/
- Published: 2008-02-05T16:18:03+00:00
- Author: Howard Lake

The Community Foundation for Ireland, which makes grants and promotes philanthropy,
has expressed its disappointment that no move was made in the January 2008 Finance
Bill to improve the tax regime for major charitable giving in Ireland. The Foundation
said that this sets Ireland apart from many developed countries where philanthropy
is encouraged through the national tax system. For organisations seeking significant
donations, the current tax laws are providing a major disincentive for making very
large gifts, the Foundation says. In the Finance Bill 2006, Minister Cowen introduced
a new Section 485C which placed a restriction on the use of tax relief schemes by
high income earners. Unfortunately, said the Foundation, he included the tax relief
scheme on donations in the list of tax relief schemes covered by this section. Individuals
with income in excess of €250,000 who have specified tax reliefs available to them
are now restricted in the amount of tax relief they can claim each year. The Foundation
says the donation scheme should not be compared to a property based tax relief where
the taxpayer owns the property and gets the tax relief. The Foundation is calling
for this cap to be removed because it believes it will slow down the move to establish
foundations in Ireland and the making of ‘7 figure + super gifts’. Modest changes
to the system are necessary it says as it is also patently unfair to those most 
deserving – not the philanthropists, but those they support. www.communityfoundation.
ie

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