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10/31/2004: "The taxman might be the Irish artists friend - but......"

The year was 1969 - Max Yasgur's dairy farm in Bethel, New York, was the location for Woodstock Music and Art Festival - Samuel Beckett was awarded the Nobel prize for literature - Neil Armstrong, the first man to leave a lunar module , was walking on the moon - " That's one small step for man, one giant leap for mankind". Meanwhile in Ireland, to be more precise, in the Irish Government, a young Finance Minister was attempting a giant leap that would dramatically change the tax status for Irish artists.  The Finance Minister was Charles J Haughey 1966 - 1970


In 1969 Haughey  introduced a tax exemption scheme for Irish artists, which was so progressive that it almost eclipsed Roosevelts WPA programmes for the American artists in the 1930's.This was one highlight of Haughey's  political career and as a life long patron of the arts, he always insisted that an enlightened policy for arts and culture, a central part of a modern government. It seemed at the time to be the start of a positive attitude to the arts in Ireland.
The tax exemption status for artists meant that working artists benefit from a tax-free working life. The earnings of artists, writers and composers whose original and creative work is recognised as having "cultural or artistic merit " is deemed tax exempt.
 Under the artists exemption scheme,if one has created an artwork, painting or sculpture,  written a book, play or musical composition, then if granted tax exemption, one is entitled to a tax - free income  from the work.
The Irish Revenue Commissioners decide whether the work is tax exempt, and issue a certificate of tax exemption. Claimants for Artists Exemption must be resident in Ireland, and not resident elsewhere. Artists intending to move to Ireland may apply for an advance opinion in respect of their work and on approval by the  Revenue Commissioners have to become tax resident in Ireland.
This Scheme has encouraged  many artists, musicians and writers to make their homes in Ireland, hopefully  creating a centre for literary, musical and artistic endeavours. Unfortunately nothing is perfect in this world , and a select few, mainly big music acts are doing quite well from the tax exemption status,  but the average income of qualifying artists is relatively low.
Artists, writers, composers and sculptors seeking Artists exemption, submit a claim form to Revenue toghether with samples of their work and any supporting documentation in the form of testimonials etc. Such claims should also be accompanied by evidence that their work has been published, produced or sold. An artist  domiciled in Ireland is allowed to leave the state for three years and still retain the tax exempt status.This is a necessary facility and permits artists to travel outside of Ireland, which is of huge importance,  in order to promote their work and widen their experience.
Haugheys recognition of the artist's role in society is significant and suggests that the state seems to determine the artist as an important participant in society. The tax free status certificate is a valuble piece of paper but in reality, it is only a piece of paper. Most artists are living on the poverty line struggling to survive, due to high costs of materials, rents etc. The irony is that the majority of working artists are unable to earn enough to be eligible for tax in the first place !
In 1969 Haughey's scheme was admirable, but it did not solve the  problem of artists income which is a very fickle commodity at the best of times. President Roosevelt attempted to improve the American artists lot by paying them a regular wage through the WPA programmes. This allowed the artist to concentrate on artistic endeavours and not worry about income.
Haughey started something which on a world scale looks very impressive and significant. Rock stars and writers have located in ireland because of the scheme, but at grassroots level  there needs to be more arts funding.
The Arts Council in Ireland, the state's principal instrument of arts funding, needs to promote the practice of arts and inform the artist. It needs to support the individual creative and interpretative artist. Everyone in Ireland is entitled to access to and participation in the arts, therefore the council could at least inform registered artists of the bursaries and vital  funding available each year. There  is a comprehensive list of registered artists available in the Revenue Commissioners offices.
Supporting all artists, at all stages of their working lives should be  paramount in an arts council's programme.
Haughey's giant leap should be commended as the necessary  beginings of  an ongoing programme , but unfortuantely nothing has  followed on  and today the Irish artist regardless of Celtic Tigers,arts councils, tax exemptions, saints or scholars, is still on the poverty line, in one of the wealthiest countries in Europe.
Ireland is celebrating the centenary of Bloomsday the day on which James Joyce's ( 1882 - 1941 ) novel Ulysses is set - 16th of June 1904. Joyce left Ireland because of the difficulty he had in finding  willing publishers. I wonder would anything be different if he returned today  in 2004 ?
" Is there anyone there ?  " said the artist, knocking on the Arts Council's door.
 
www.revenue.ie/services/tax_info/artinfo.htm
 

Replies: 3 Comments

on Monday, November 1st, Walter King said

I read a few years ago that the arts (all of them together) is a multi-billion dollar a year economy. Most politicians and business folk forget that every product is touched by an artist at various points from creation to final sale. And the fine arts in general (even if only considered entertainment) add multi billion enhancements to the economy. They'll not give us tax relief for that reason alone. Unless they find a way to create it as a kind of welfare for artists making below a certain income. And at that point they do consider us parasites.

on Monday, November 1st, jose freitas cruz said

If I remember correctly the rest of Europe was impressed [surprised?] by the tremendous way Ireland managed the EU presidency. I was somehow hoping that some of the innovative ideas and approaches you’ve proven to the rest of us to be possible and productive would be taken on by other governments and institutions. Of course, as always, that was all at the political level, and after reading your blog I am left with a sense that in spite of its pioneering efforts in the cultural department Ireland suffers from the same shortcomings as the rest of us [though I believe the Dutch and the Danes have some interesting policies we should perhaps have our politicians look into].

The [misplaced] fear of loosing identity that seems to be the focus of discussion these days alongside the issue of sovereignty keeps our bureaucrats from seeing the greater benefits the revival of culture at the local level would have on the overall balance of the Europe they are trying so hard to create. If politicians were to stick to their projects of unification at the levels that are required and put in place instruments that would allow intellectuals and artists (the whole bunch of us: poets, painters, sculptors…) to get on with what we do best I have no doubts that we would achieve staggering results – coming much closer together whilst keeping alive our cultural diversity. As always businesses and other ventures are given incentives to survive but artists continue to be viewed as parasites and the cultural dimension as a secondary achievement of our civilization. According to our law makers we are not productive elements yet they forget that through our action we provide a service that enhances the well being of society as a whole [gone are the days when art and literature was only for a limited elite] and that we are an important source of new ideas and ways to absorb them, and thus, do indeed have an effect on productivity. When will they ever learn…

on Sunday, October 31st, Walter King said

Thanks for the history lesson John. The tax incentive for artists in Ireland has been a noble and educational experiment. I wonder whether so called "commercial" artists are allowed to benefit from the exemption? Or is it defined only to support the fine arts. If commercial or applied artists are not included do you have any idea how they define the difference? For instance commisioned work, which is one of the areas where the two ideas are quite similar, would be hard to distinguish.