Michael Ring
Question:234 Mr. Ring asked the Minister for Finance if the Revenue Commissioners will assess REP scheme payments to farmers as having no tax liability attached in view of the fact it is a grant payment rather than income. [19624/98]
Written Answers. - Tax Liability.
REPS payments compensate a farmer for the loss of output and related income which arises because the farmer now farms in a more environmentally friendly way. They are thus a substitute for the income he would have got if he continued to farm more intensively. REPS payments are accordingly taxable as income and I have no plans to change the present position.