Artists who have claimed tax exemption to be outed
MORE than 2,000 painters, sculptors, authors and composers have been told by the
Revenue Commissioners that they are about to be outed as beneficiaries of
the artists tax exemption between 1998 and 2001. The publication of their names
follows a ruling by Emily O'Reilly, the ombudsman, following an
application under the Freedom of Information Act.
As well as assisting struggling artists, the tax scheme is a lucrative perk for
some of Ireland's super-rich. One multi-millionaire artist was able to avoid
paying tax on up to £10m of earnings over eight months in the short tax year of
2001.
The Revenue Commissioners say 28 artists earning between £500,000 and £10m
claimed exemption on more than £46.6m in earnings in 2001, the most recent date
for which figures are available. The big winners are thought to be members of
the musical elite who were given tax breaks on their lyrics and musical
compositions.
The scheme, which is currently being reviewed by the Department of Finance, was
introduced in 1969 by Charles Haughey, the then finance minister. The tax break
convinced several foreign writers and musicians to settle in Ireland, including
the writers JP Donleavy and Frederick Forsyth, and musicians such as Ronnie Wood
and members of Spandau Ballet.
Despite O'Reilly's decision, none of the artists whose earnings were granted
exemption between 1969 and April 21, 1998, the date the Freedom of Information
Act came into law, will ever be published.
In a letter to the 2,000 artists whose names are to be revealed, tax officials
promise that the disclosure will involve minimal intrusion on their privacy.
Disclosure could arguably be deemed to benefit the individuals concerned, it
says. Disclosure would reveal that (the) Revenue considers the works of the
artists to be original and creative and to have cultural merit.
There is also significant public interest in ensuring maximum openness regarding
public expenditure, particularly where there may be a perceived lack of
transparency in the public body's procedures and criteria. A Revenue
spokesman said they had had quite a positive response to the letter. The names
are expected to be made public next month.
Bands such as U2, the Corrs, Boyzone, Westlife, and singers such as Enya, Van
Morrison and Chris de Burgh are all thought to have availed of the exemption,
but their names will not be in next month's list if they first claimed tax
credits prior to 1998.
Ciaran Cuffe, the Green party¡¦s equality spokesman, has called for a cap on the
amount of income tax relief that can be sought. Ireland allows artists to keep
every cent of their artistic earnings, although they pay PRSI.
Since the beginning of 2002 all those applying for exemption have been told that
their names will be made public.
This has resulted in the names of 1,044 painters and photographers, 469 authors,
248 sculptors, 234 composers, 156 writers of non-fiction and 143 playwrights
being revealed.
They include Bertie Ahern's novelist daughter Cecelia Ahern, Irvine Welsh, the
author of Trainspotting, and Bill Cullen, the Renault boss who wrote It's a Long
Way from Penny Apples.