Observations on tax

As every aspiring author knows, writers and artists living in Ireland do not pay income tax on money earned for creative work. Now, however, the Dublin government has this unusual perk under review and, while the Irish Arts Council is lobbying hard to save it, the question is being asked, would it really be missed?

It was introduced in 1969 by then finance minister Charles Haughey to help struggling poets and painters, and its supporters say it turned a backwater into a vibrant arts hub.

Man Booker winner John Banville, D B C Pierre and Irvine Welsh would no doubt agree - as Irish residents, they have all enjoyed tax-free status.

Detractors point out, however, that a policy which allows the likes of U2, Westlife and chicklit queen Marion Keyes to live as tax exiles in their own country needs rethinking. Isn't it time the millionaires were made to pay their way?

John O'Donoghue, the minister for arts, thinks not. "I support the principle of equity," he says, "but there is little point in taking a principled position if the net effect is to make us worse off as a nation." This is code for, "if we make Ronan Keating pay tax he'll move to Los Angeles".

O'Donoghue, the Arts Council and groups representing writers, musicians and artists insist that if the tax break goes the film, recording and tourist industries will suffer.

But the idea that the exemption is good for artists, or art, is open to question. Half those who qualify earn less than 50,000 euros per year, and many also hold down day-jobs.

It hasn't made a huge difference to them. And these days what Irish writers and musicians produce is often apolitical and cosy (unlike the work of journalists, who do pay tax). After all, if you don't pay for public services, why should you care about corruption in public life, or about rat-infested schools?

Edel Brosnan is an Irish writer living in London. She is fully tax-compliant

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