Revenue Tax Briefing Issue 47, April 2002
Section 12 inserts a new Section 480A into Chapter 1 of Part 15 of TCA 1997. The section makes provision for relief from income tax in respect of certain earnings of sports persons listed in Schedule 23A of that Act. The sports persons concerned are: athlete, badminton player, boxer, cyclist, footballer, golfer, jockey, motor racing driver, rugby player, squash player, swimmer and tennis player.
The earnings to which the relief applies are earnings deriving directly from actual participation in the sport concerned such as prize money, performance fees, etc. but not other earnings such as sponsorship fees, advertisement income or income from endorsements, etc. The relief takes the form of a deduction from earnings equal to 40 per cent of those earnings for up to any 10 years of assessment back to and including the tax year 1990/91 for which the sportsperson was resident in the State.
The relief will be given by way of repayment of tax and is to be claimed in the year in which the sportsperson ceases permanently to be engaged in that sport provided they are resident in the State in that year. Provision is made to withdraw the relief by way of a Case IV assessment for the years in respect of which the relief was originally given if the person subsequently recommences to be engaged in that sport, though this does not prevent a subsequent claim for the relief if and when the sportsperson finally does retire at a later time.