Irish artists plead to keep tax exemption scheme
Ireland's artists called on the government on Thursday to protect tax breaks that have lured struggling writers and musicians to its shores but which critics say unfairly helps high-earners like rock group U2 get richer.
The scheme, which has been in place since 1969 and is unique to Ireland, is among a raft of tax incentives being reviewed by the finance ministry ahead of December's budget.
Critics of the scheme, brought in to promote the creative arts, are angry that successful, wealthy artists such as singer Enya and novelist Roddy Doyle, are exempted and point out half the income involved is earned by two percent of the artists.
However, Mary Cloake, director of the Irish Arts Council, which is calling for the scheme's retention, said struggling artists were the biggest beneficiaries, with the average earnings of the bottom 50 percent of those who availed in 2001 being 5,200 euros.
"Any suggestion this is a scheme for the rich is misplaced," she said. She warned that the abolition of the tax shelter would result in a "brain drain" of artists out of the country and "cost Ireland a generation of new and emerging artists".
Among those who have moved to Ireland to avail of the shelter are Scottish novelist Irvine Welsh, millionaire author of "Trainspotting", and, in the early days of the scheme, thriller writer Frederick Forsyth, famous for "Day of the Jackal" and "The Odessa File". The scheme was the envy of the international art scene, Cloake said, enhancing the country's reputation as a cultural hub.
Top beneficiaries of the exemption, which applies exclusively to income derived from "creative and original" work, include singer Van Morrison, boy band Westlife, Riverdance impresario Bill Whelan, and film director Neil Jordan.
In 2001 -- the latest year for which figures are available -- 1,300 artists claimed relief on earnings totalling around 106 million euros, at a cost to the Irish exchequer of 37 million. Some 20 millionaire artists benefited, including one performer who earned 10 million euros.
Irish playwright Conor McPherson, whose acclaimed play "The Weir" ran for two years at London's Royal Court Theatre, said the scheme was crucial to nurturing the talent that had established Irish culture as an international brand.
"It's one of the best things about this country, a great achievement, and it seems almost barbaric to turn around now and say let's scrap it. There's no reason," he told Reuters.