Tax exiles could buy extra days in Ireland with charitable donations
Howard Lake | 21 July 2013 | News
Wealthy Irish tax exiles could spend extra time in Ireland if they make donations to charity under a proposal made by the government-supported Forum on Philanthropy.
Currently, a person is considered a non-resident for tax purposes in Ireland if they spend fewer than 182 days a year in the country. The proposal was discussed recently by an Oireachtas Finance Committee, according to the Irish Times. Minister for Finance Michael Noonan has reportedly described it as ‘attractive’.
If enacted, the scheme would allow tax exiles to spend an extra two months a year in Ireland in return for a €15 million payment over 10 years. This would be front-loaded with an initial payment of €5 million followed by 10 annual payments of €1 million.
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There are an estimated 400 Irish tax exiles around the world. If all of them signed up then this could bring in a maximum of €2 billion to good causes, with an annual income of €400 million a year.
The scheme could help to counter the effect of the drop in grants to charities following the recent closure of the One Foundation and the current winding up of Atlantic Philanthropies by 2015.
Not all TDs are in favour of the scheme, with Labour member Kevin Humphreys saying it would “turn my stomach to give some of these individuals extra days in Ireland.”
Image: Give and receive by iQoncept on Shutterstock.com
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.