CULTURAL chiefs are expected to this week approve the donation to the state of a Dutch masterpiece originally in the Russborough House collection.
The section 1003 committee, which oversees the use of a tax relief scheme, is due on Tuesday to discuss the acceptance of a kermesse (Flemish country festival) scene by David Teniers the Younger. It is understood to have been bought by businessman Lochlann Quinn for about €2m, having been withdrawn from a Christies auction last summer.
If the committee approves the donation, Quinn will be given 80% of the purchase price as a tax credit, and will bear the remaining cost of €400,000 himself. The Teniers would go to the National Gallery of Ireland.
It was among the paintings the Alfred Beit Foundation (ABF) had offered for sale at Christies last summer, saying it needed to create an endowment fund of up to €15m to secure the future of Russborough House. The ABF called off the sale, including of two works by Rubens, following a public outcry.
The foundation had wanted Michael Noonan, finance minister, to change the terms of the section 1003 tax break to give donors the full value of the artwork they bought, instead of just 80%. Noonan refused to do this, saying the relief was “already very generous”.
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“They [the foundation] were disappointed with the budget,” said an ABF source. “They still hoped that the Section 1003 change would happen. The original white knight who is buying the Teniers has been trying to get other white knights to use the scheme. There is still potential for one or two of the Russborough paintings to be purchased in that way.
“At most, that will raise up to €5m for the ABF, and it needs €15m. The ABF is hoping to trade the paintings for an annual grant from the state, but has made little headway on that.”
A further problem for the ABF is that if any of the Russborough paintings are sold in Ireland, VAT at 23% is levied. If sold outside the state, it will not pay VAT.
Last week, the Department of Arts and Heritage said it was in contact with the ABF to discuss issues such as marketing the house to visitors. A spokeswoman for Simon Harris, the Fine Gael minister in whose constituency Russborough is based, said he has offered the ABF access to the Office of Public Works’s technical expertise and is willing to meet members of the foundation.
Last year, there was one donation under section 1003, of paintings worth €160,000.