In the case of corporate donations, the company claims a deduction for the donation as if it were a trading expense and there is no grossing up in this case and no repayment claim by the approved body arises.
Tax Relief in respect of donations by an individual to an approved body such as Waterford Treasures is allowed to the body rather than the donor.
A donation which satisfies the conditions of Section 848A TCA 1997 is grossed up at a specific rate (currently 31%) and the approved body – Waterford Treasures - is deemed for the purposes of the relief to have received the grossed up amount net of tax deducted at the specific rate.
An individual donor must complete a CHY3 Cert and forward to the approved body to allow that body claim a refund of the tax on the grossed up amount of the donation.
The donor must have in the normal course, paid the equivalent of the tax for the amount to be reclaimed by the approved body.
Full details are to be had from the Revenue website: www.revenue.ie
Waterford Treasures as a registered charity can claim the tax on donations of €250.