asked the Minister for Finance whether farmers with less than £40 PLV who engage in pig and chicken production on a large scale are liable to income tax on their profits.
Written Answers. - Small Farmers' Tax Liability.
718.
The profits of a farmer occupying land who is engaged in the production of pigs and chickens on a scale customary among farmers would be regarded as arising from farming activities. If, in such circumstances the rateable valuation of the farmer's land is less than £40 and neither he nor his wife carry on another trade or profession or hold a particular type of directorship, there would be no charge to tax on the farming profits.
However, where extensive buildings and other facilities are utilised for the production of pigs and chickens on a small holding of land, any such activities would be considered as the carrying on of a separate taxable trade. The question as to whether, in any given case, an occupier of land is a farmer for tax purposes or is carrying on a separate taxable trade is a question of fact determined, by the Revenue Commissioners, by reference to the scope of the activities undertaken.