Published: Wednesday, 13th January, 2010 5:00pm
Ahern's book means it's time to revisit artists' tax scheme
by Tadhg Carey
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There is now a crying need to re-examine the Artists' Exemption Scheme following news last week that former Taoiseach Bertie Ahern will not be liable for tax for earnings from his recently-published autobiography.
Mr Ahern is amongst 69 new additions to the list of tax-free artists, including 33 other writers, 18 painters, five playwrights and script writers, three musicians, three installation artists, three photographers, two sculptors and one illustrator.
The scheme was originally introduced by Charlie Haughey and applies to earnings from a book or other writing, a play, a musical composition, a painting or sculpture.
However, there have been growing concerns that the scheme, like many tax shelters, favours the wealthy.
Figures for 2006 showed that 28 of the country's artists who had incomes over €1 million saved a total of more than €32.5 million.
But some 1,366 artists, almost half the total of those who benefited from the scheme in that year, were earning less than €10,000 a year and the tax lost to the State as a result of their claims was less than €1 million.
An amendment to the scheme in 2007 capped earnings at a maximum of €250,000 per annum after which tax is payable. A lesser threshold of €125,000 was imposed in last December's budget.
Bertie Ahern is not the only politician to have availed of the scheme, Ruairi Quinn's "Straight Left: A Journey In Politics" was also deemed eligible a number of years ago.
Interestingly, the inclusion of Ahern indicates that Revenue deems his tax affairs to be in order as those receiving payments of €6,500 or more within a twelve-month period from a government or public body are required to have a tax clearance certificate in order to apply for the artists' tax relief.
It'll be interesting to see what the Mahon Tribunal, the final report of which is still due, has to say about all this.
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truthisfree
(Unregistered User)
Jan 22 10 11:18
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It is a disgrace that people like Bertie Aherne get this tax break, It should be got rid of completely, why should an artist have tax breaks anyway?
Jane
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Feb 17 10 23:39
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I know as an artist that the tax scheme is crucial. I do believe that the cap is a good idea. Bertie is the exception not the rule.
The vast majority of artist are very much on the breadline. It is not a 9-5 clock in clock out job and should not be treated as one. As it is most artists make very little from the creative pursuits, if you take it hour for hour it would be less than minimum wage.
Did you know that revenue from tourism generated by the Arts puts 5 billion euro a year more than any other? Did yo know that included healthcare, education and culture&the arts are the criteria from international companies investing in the country.
Do you think writer than spends 2 years writing a book and earns 4,000 euro for it ought to be taxed? Most artists have other jobs that they pay tax on.
Jane
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Feb 17 10 23:46
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Excuse my forgetfulness to proof read.
I mean to clarify that artists generate 5 billion euro for the economy through tourism alone for their work yet they themselves receive little fiscal compensation. This is not including the other financial benefits to the country and the benefits that can not be quantified by money.
Technically the vast majority of the artists are in the low income brackets are would be classed as "poor" in our society yet are bringing billions upon billions into the country.
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