Wednesday, November 4, 2015
The legislature has been supportive of sportspeople working in Ireland through the provision of tax breaks and reliefs for certain classes of sportspeople, as originally provided for by section 12 of the Finance Act 2002. The provision of this tax relief has made it attractive for professional sportspeople to reside in Ireland and has been instrumental in retaining high calibre sportspeople in Ireland.
The purpose of the tax relief for sportspeople in Ireland is to provide recognition of the relatively short careers most professional athletes have, and to reflect the reality that many of them may face a transition period where they have a limited earning capacity. This positive attitude towards tax relief for certain classes of sportspeople has been maintained by successive governments. Indeed, Minister for Finance Michael Noonan previously rejected proposals from his cabinet to cap the refund available to sportspeople.
Qualifying individuals for the purpose of the relief are set out in Schedule 23A to the Taxes Consolidation Act, 1997 and includes rugby players, domestic soccer players, jockeys, motor racing drivers, swimmers and other professional sports people who have retired from their sports.
– Finance Act 2002, s12, as effected by the Taxes Consolidation Act 1997, s480(A), amended by the Finance (No.2) Act 2013, s15
– Pearse Kenney, ‘Changes to Tax Relief for Sportspersons’ Tax Accountancy Ireland, Accountancy Ireland Magazine Vol. 46 No.1 (February 2014)
– Revenue – Irish Tax and Customs, Costs of Tax Expenditures (2004 – 2013)
– Taxes Consolidation Act 1997, s480(A)