Should the Irish Times cease being a 'charity'?

national | arts and media | opinion/analysis

Wednesday December 08, 2004 18:13

by Michael Hennigan - Finfacts.com

In November, significant Revenue data on tax reliefs was issued in response to Dáil Questions from Deputies Joan Burton, Richard Bruton and Paul McGrath.

Last week, as if it was all a revelation to him, the Taoiseach Bertie Ahern said that 'the game is up' for those who have paid little or no tax through availing of the many reliefs/schemes, which are undermining the taxation system. On Friday last, Mary Harney jumped on the bandwagon and said that individuals who earn more than €200,000 should pay a minimum of 20% in income tax.

The Minister for Finance announced in the Budget that all tax reliefs/schemes are to be reviewed. Ireland has a low tax regime and the intention is that many of the schemes which allow both wealthy individuals and companies to significantly lower taxes paid, should be abolished or significantly curtailed.

In Ireland there are more than 5,000 organisations, which have charitable trust status, which comes with a tax-exemption. Not all are charities as generally understood and the Irish Times is controlled by one.

In my view, the Irish Times is compromised by claiming to be a charity.

In 1974 when the then 5 shareholders cashed in their stakes, prior to the introduction of a capital gains tax, through the conversion to a trust, the control of the organisation was effectively vested in one of the former shareholders Thomas McDowell who had been Chief Executive and continued in that position for almost the two subsequent decades.

In 1999, Richard Curran of the Irish Independent reported that a retained amount of £21 million (€26.7m) had been built up for charitable purposes since 1974 and not a penny had been paid out. According to Curran, such payments are only to be made when a surplus arises above the spending requirements of the Irish Times itself.

It has been reported that McDowell and his daughter Karen Irwin, the group legal counsel, were paid a total of £850,000 (€1.079m) annually, a few years ago.

In contrast with the Irish Times, the Farmer's Journal which is also run by a trust, actually disburses funds for research and education in agriculture.

The Irish Times can protect its independence while paying corporation tax on the same basis as other companies and if it wishes to remain as a charity, it should be clear as a policy, what percentage of profits are to be distributed and to whom.

Without a change, it will continue to be a case of-let he who has not sinned, cast the first stone!

From the Irish Times June 5, 2002:

The Programme for Government also promised reform of the law relating to charities to ensure greater accountability and protect against abuse of charitable status and fraud. There is very little statutory regulation of charities at the moment.

A time-bomb for charities - Paul Cullen
Irish Times, 19/07/2002

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