Revenue Note for Guidance

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Revenue Note for Guidance

235 Bodies established for the promotion of athletic or amateur games or sports

Summary

This section exempts from income tax and corporation tax the income of certain bodies established for the sole purpose of the promotion of athletic or amateur games or sports where it can be shown to the satisfaction of the Revenue Commissioners that such income is applied solely for those purposes.

Details

Definitions

(1)approved body of persons” is any body of persons whose sole purpose is promoting athletic or amateur games or sport, and includes any body of persons that previously enjoyed exemption from income tax under section 349 of the Income Tax Act, 1967 for the year 1983–84 or earlier years or, in the case of companies, exemption from corporation tax under that section, as applied by section 11(6) of the Corporation Tax Act, 1976, for accounting periods ending before 6 April, 1984.

However, not included is any body to which the Revenue Commissioners gives notice in writing stating that they are satisfied that the body —

  • was not established solely for the purpose of promoting athletic or amateur games or sports,
  • was established wholly or partly for the purpose of securing a tax advantage, or
  • having being established for the sole purpose of promoting athletic or amateur games or sports, no longer exists for that purpose or begins to exist wholly or partly for the purpose of securing a tax advantage.

Before the issue of such a notice, the Revenue Commissioners may consult with any person or body of persons that may be of assistance to them in deciding whether such a notice should issue.

Exemption

(2) Exemption from income tax or corporation tax is granted in respect of so much of the income of any approved body of persons that can be shown to be income which has been or will be applied solely for the purpose of the promotion of athletic or amateur games or sports.

Withdrawal of exemption

(3) The Revenue Commissioners may by notice withdraw the exemption granted to any body of persons under this section.

If the notice is one issued under paragraph (I) of subsection (1), the exemption granted to the body of persons ceases to have effect, as respect income tax, for the later of the year of assessment in which the body was established and the year 1984–85, and for all subsequent years of assessment and, as respect corporation tax, for the first accounting period of the body which starts after 6 April, 1984 and for all subsequent accounting periods.

If the notice is one issued under paragraph (II) of subsection (1), the exemption granted to the body of persons ceases to have effect, as respect income tax, for the earlier of the year of assessment in which, in the opinion of the Revenue Commissioners, the body ceased to exist for the sole purpose of promoting athletic or amateur games or sports and the year in which it commenced to exist wholly or partly for the purpose of securing a tax advantage, and for all subsequent years of assessment. The withdrawal of exemption does not apply to a year ended before 6 April, 1985. As respects corporation tax, the exemption ceases to have effect for the earlier of the accounting period in which, in the opinion of the Revenue Commissioners, the body ceased to exist for the sole purpose of promoting athletic or amateur games or sports and the accounting period in which it commenced to exist wholly or partly for the purpose of securing a tax advantage, and for all subsequent accounting periods. The withdrawal of exemption does not apply to an accounting period ended before 6 April, 1984.

Appeals

(4) A body of persons aggrieved by a notice issued by the Revenue Commissioners under subsection (1) may appeal that notice to the Appeal Commissioners. An appeal is made by notice in writing within the period of 30 days after the date of the notice issued under subsection (1). The Appeal Commissioners will hear and determine an appeal in the manner provided for in Part 40A.

Delegation of functions and powers

(5) The Revenue Commissioners may authorise any of their officers to perform any functions or exercise any powers imposed or conferred on the Commissioners by this section.

Relevant Date: Finance Act 2021