Visiting rock bands should be required to pay tax in Ireland
Issued : Sunday 26 April, 2009
Statement by Sean Sherlock TD
Minister of State, Department of Enterprise, Jobs & Innovation and Department of Education & Skills with responsibility for Research & Innovation
Labour TD Seán Sherlock has slammed the government for failing to introduce a tax levy on visiting rock bands and performers that could raise hundreds of millions of euro for the Exchequer.
"Despite this issue being highlighted recently the government failed to make any move in the mini-budget to address the anomaly. This is ludicrous given the fact that practically every other country in the world is raising taxes from visiting performers.
"Instead we have a government that chooses to cripple middle income families with more levies and abolish the Christmas bonus. Having raised this issue with the Minister for Finance I am told that he has asked for the matter to be reviewed which begs the question had this even dawned on him until now.
"A delegation from the AMAA (Artiste Management and Agents Association) met Bertie Ahern when he was Finance Minister in 1992 to make the case for the retention tax for visiting artists but again nothing was done.
"It is estimated that as much as €200m in taxes from international artists appearing in concerts and festivals has been lost to the Exchequer because of the failure to implement the double taxation treaty.
"I understand that recent concerts by Tina Turner and Bruce Springsteen grossed around €12m while top international acts will command millions in fees for appearing at festivals like Oxygen and Electric Picnic. They won't pay a penny but the average worker in this country is now paying through the nose."
SEE MINISTER'S REPLY BELOW
DÁIL QUESTION
NO. 93
To ask the Minister for Finance if he plans to implement a double taxation treaty to allow for the taxing of visiting rock bands and performers in view of the fact that they are levied in every other country in the world and revenue is being lost as a result of the failure to implement this tax; and if he will make a statement on the matter.
- Seán Sherlock.
* For WRITTEN answer on Thursday, 23rd April, 2009.
REPLY
Minister for Finance ( Mr Lenihan) :
The question of introducing a withholding tax regime on income earned in Ireland by foreign artists was examined in the late 1980's/ early 1990's by my Department and the Revenue Commissioners. However, because of the small prospective yield at the time, the capacity of such a regime to discourage artists visiting Ireland and the administrative burden associated with collecting a relatively small yield, it was decided not to proceed. I have asked that the matter be reviewed given developments since the last review.
I understand that while many countries have arrangements for the taxation of foreign artists it is not universal. For example I am informed that Denmark and the Netherlands do not have such arrangements.
NOTE TO EDITOR
When Irish bands and performers play in the UK they are taxed by the UK Inland Revenue on their fees under Article 16 of the Ireland/UK Double Taxation Treaty 1976.
They can pay up to 25pc of their fees in the UK and under the treaty some of the tax may be repayable by the Irish Revenue, which means that Ireland loses and the UK benefits.
But because Ireland has not implemented the relevant legislation, foreign performers do not pay similar taxes here -- and this can mean a double loss for the Irish exchequer.
