Professional athletes will receive tax relief on their earnings under a new scheme included in the Finance Act announced today by the Minster for Finance, Mr McCreevy.
Under the scheme professional sports people can claim back tax for any ten years of their career by way of a 40 per cent deduction from their wages or prizemoney, but not endorsements.
The ten-year period cannot commence before April 6th 1990 and claims can only be made in respect of years the person was resident in Ireland.
Mr McCreevy said he wanted to help athletes who have a relatively short career to earn substantial money and to raise the prestige of Ireland as location for professional sports people as well as encouraging participation in sport.
The Minister said professional sports people with relatively low earning power such as National Hunt jockeys, League of Ireland soccer players and club rugby players will benefit most from the scheme.
Other previously unannounced measures in the Finance Bill include the abolition of the restriction on the amount of deductible motor car running expenses for corporation tax and income tax purposes.
The Bill will also expand relief to cover payments for medical expenses of family members which can now be met by a wider range of relatives. The new legislation will also provide relief for people paying expenses of non-family members who are over 65 years-of-age.