Revenue Note for Guidance

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Revenue Note for Guidance

208B Charities – miscellaneous

Summary

This section contains a number of administrative provisions dealing with the tax exemptions provided for in sections 207 and 208 and the new arrangements concerning overseas charities provided for by section 208A.

Essentially, this section sets out that applications made under sections 207, 208 and 208A must be supported by whatever information the Revenue Commissioners may reasonably require to determine the claim.

In addition, it also requires charities that have been granted an exemption or a notice of determination, to submit a report to the Revenue Commissioners on their ongoing activities. Revenue is also given the power to appoint an auditor to verify any information provided to them.

Details

Definitions

(1) The following definitions apply for the purposes of this section:

“charity trustee” includes-

  1. where the charity is a company, the directors and other officers of the company, and
  2. where the charity is a body corporate (other than a company) or an unincorporated body, any officer or any person performing the functions of an officer of the body.

“qualified person” means—

  1. a person who is qualified for appointment as an auditor of a company under section 187 of the Companies Act 1990, or
  2. where a person or trust –
    1. has made a claim for a determination under section 208A(2),
    2. is established in an EEA state or in an EFTA state, and
    3. does not have a principal place of business in the State,
    a person who is qualified under the law of that EEA or EFTA state to perform the same or equivalent functions to those which may be performed in the State by a person referred to in paragraph (a).

Claims

(2) All claims for exemption under section 207 or 208, or for a determination under section 208A, must be supported by whatever information the Revenue Commissioners may reasonably require to enable them determine the claim. Such information is likely to include the charity’s Governing Instrument, a statement of its activities prior to the date of the claim and of its plans for the 12 months following the claim, its annual report and latest financial statements.

Provision of information

(3) A charity that has been granted exemption under section 207 or 208, or issued with a notice of determination under section 208A shall provide such information as the Revenue Commissioners may require in respect of its activities in any financial year following the granting of an exemption or the issuing of the notice of determination. Such information is likely to include the charity’s annual report and financial statements for the period in question.

Official language

(4) Information provided to the Revenue Commissioners under subsection (2) or (3) must be in an official language of the State.

Verification of information

(5) The Revenue Commissioners may appoint a qualified person, i.e. an auditor or equivalent in an EEA or EFTA state, to verify any information provided to them under subsection (2) or (3).

Recovery of expenses

(6) The Revenue Commissioners may recover expenses incurred by them under subsection (5) as a simple contract debt in any court of competent jurisdiction from the charity trustees (who are jointly and severally liable for those expenses), or the charity concerned, where it is not practicable to recover the expenses from the charity trustees.

Relevant Date: Finance Act 2021