213 Trade unions

Summary

A registered trade union which is precluded by statute or by its own rules from assuring to any person a sum exceeding €10,160, or €2,540 per year by way of annuity, is entitled to exemption from income tax under Schedules C, D and F in respect of interest and dividends which are applicable and applied solely for the purpose of provident benefits.

Details

Provident benefits

(1) The term “provident benefits” includes any payment expressly authorised by the registered rules of the trade union and made to a member —

• during sickness or incapacity from personal injury or while out of work,
• who is an aged member by means of superannuation,
• who has met with an accident, or
• who has lost his/her tools by fire or theft.

The term includes a payment in discharge or aid of funeral expenses on the death of a member, or the wife of a member, or a provision for the children of a deceased member.

Exemption

(2) A registered trade union which is precluded by statute or by its own rules, from assuring to any person, a sum exceeding €10,160 by means of gross amount, or €2,540 per year by way of annuity, is entitled to exemption from income tax under Schedules C, D and F in respect of its interest and dividends which are applicable and applied solely for the purpose of provident benefits or the education and training of its members and dependent children of members.

Claims

(3) 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 of the trade union.

Penalties

(4) 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