THE GRANTING of tax-free status to former taoiseach Bertie Ahern for earnings from his autobiography under the artists’ exemption scheme has prompted calls for the scheme to be revised.
Labour Party arts spokeswoman Mary Upton said the tax break served a worthy purpose and she would not like to see it removed, but it should be reviewed. “In the current economic climate we need to have another look at who is eligible and the financial structures around their eligibility,” she said.
On the basis of reports that Mr Ahern was paid an advance of more than €100,000 to write his autobiography, he could save in the region of €41,000.
Ms Upton said the scheme was introduced “for struggling artists, to give them an opportunity to be creative. Artists who are young and not wealthy must continue to be taken account of and should not be sidelined”.
A Fine Gael spokesman said he believed people would find news that Mr Ahern could avail of the scheme particularly frustrating as it coincided with news of a steep decline in tax revenue.
“While Bertie Ahern’s imagination and creative writing is clearly well known and recognised at this stage, the fact that the former taoiseach manages to qualify for this tax exemption will be particularly galling for ordinary taxpayers who were hammered in the recent Budget,” the spokesman said.
Labour TD Ruairí Quinn, who has availed of the exemption, said there very few direct accounts from Irish politicians of their time in office and this was something that should be encouraged.
“But that’s a separate issue to the one of taxation. I think in the context now where we have a serious shortfall in tax revenue all of these schemes have to be looked at,” he told RTÉ News at One.
A spokesman for the Arts Council said it gave recommendations to the Revenue Commissioners, “but Revenue do make the decision”.
According to the Department of Finance, restriction of reliefs, which include tax relief for artists, will be amended from the 2010 tax year.
High earners subject to the full restriction will pay an effective rate of tax of 30 per cent, on average.
This will be in addition to PRSI, the health levy and the income levy.
