211 Friendly Societies

Summary

A registered friendly society which is precluded by statute or by its own rules from assuring to any person a sum exceeding €1,270, or €70 per year by way of annuity, is entitled to exemption from income tax in respect of its income chargeable to tax under Schedules C, D and F. An unregistered friendly society whose income does not exceed €205 is also exempt from income tax.

Details

Unregistered societies

(1) An unregistered friendly society whose income does not exceed €205 is exempt from income tax.

Registered societies

(1)&(2) A registered friendly society which is precluded by statute or by its own rules from assuring to any person a sum exceeding €1,270 by means of gross amount, or €70 per year by way of annuity, is entitled to exemption from income tax in respect of its income chargeable to tax under Schedules C, D and F. However, a registered friendly society is not entitled to exemption from tax under this section unless the Revenue Commissioners determine that the society satisfies the following conditions —

• that it was established solely for any or all of the purposes set out in section 8(1) of the Friendly Societies Act, 1896 and not for the purpose of securing a tax advantage, and
• that since its establishment it has engaged solely in activities designed to achieve the purposes for which it was established and that it has not undertaken trading activities (other than insurance in respect of its members) for profit.

Determinations

(3) The Revenue Commissioners, in making a determination in relation to a registered friendly society, are to consider any evidence submitted by the society.

Appeals

(4) Any friendly society aggrieved by a determination of the Revenue Commissioners is entitled to appeal to the Appeal Commissioners. The appeal is made via notice in writing to the Appeal Commissioners. An appeal must be made within 30 days after the date of the notice of the determination. The appeal will be heard and determined in the manner provided for in Part 40A.

Claims

(5) Every claim for exemption under this section must be verified by affidavit and must be proved by the treasurer, trustee or any duly authorised agent.

Penalties

(6) Any person making a false claim under this section in respect of income chargeable under Schedule C must forfeit €125.

Relevant Date: Finance Act 2021