Artists: A small number of highly paid artists mopped up most of the €20 million-plus a year that the tax break for these individuals was costing the exchequer between 1998 and 2002, the latest figures show.

The Budget 2006 review of tax schemes shows that the majority of those who claimed the relief during that period were earning less than €50,000.

In the 1998/99 tax year, there were 749 artists in this income bracket, and they cost the exchequer a total of €1.21 million of the €24.5 million in tax foregone by the State.

During the same period, there were 13 artists in the State who earned over €1 million. They benefited to the tune of €16.7 million. Another six who earned between €500,000 and €1 million cost €1.5 million in tax foregone.

Other years display a similar pattern. In the 2002 income tax year, the last for which figures on the cost of the incentive are available, 1,323 artists earned up to €50,000. The total tax foregone was €2.4 million. Eleven artists who earned more than €1 million cost €9.56 million in tax foregone. The total cost to the exchequer that year was €22.78 million.

In 2001, 1,150 artists on up to €50,000 cost €2.24 million, while 14 people who made over €1 million cost €12.18 million.

The review also states that the majority of the 26 top earners who claim the relief are in the music industry, and over 90 per cent of their income comes from abroad.

The report also notes that the same four people featured in the top 10 claimants over the last four years for which figures are available, while seven individuals featured twice.

It also acknowledges that the majority of those at the bottom of the earnings table have other incomes that are taxed.

The tax break is not attracting large numbers of foreign artists to come and live in the Republic. The figures show that this comes to five a year at most. It also states that it is not possible to measure the benefits, if any, of the relief.

The exemption applies to individuals such as writers, painters, sculptors and musicians.