asked the Minister for Finance the progress, if any, which has been made in relation to farmer taxation; the number of farmers who are expected to make tax returns this year; the number who are expected to pay income tax; the estimated total income tax taken from farmers; and if he will make a statement on the matter.
Written Answers. - Farmer Taxation.
19.
Significant progress in relation to the taxation of all farmers likely to have taxable incomes was made in 1987 with the issue of the new farm profile form to some 30,000 farmers not already on tax records. To date 14,000 farmers have responded. Once the processing of those forms which have been returned is complete, the Revenue Commissioners will pursue those cases where farmers have failed to complete and return the proflle forms. A further issue of profile forms to farmers who have not so far been approached will be considered when the processing of the 30,000 forms already issued has been completed. In addition a new system of voluntary self-assessment for the tax year 1988-89 has just been introduced covering all self-employed persons including farmers. This system will make it much more difficult, and costly, for the individual to delay the payment of income tax.
The number of farmers who will be required to make tax returns in respect of 1988-89 will depend to some extent on the number of cases which will be excluded from that obligation by inspectors of taxes, whether on the basis of processed farm profile forms or otherwise. This can occur in cases where it is apparent that no liability to tax is likely to arise. Taking account of exclusions it is tentatively estimated that about 63,000 farmers will be obliged to make a return of income for 1988-89.
The number of farmers who are expected to be ultimately liable for income tax for 1988-89 is tentatively estimated at 29,000. The estimated net receipt of income tax from farmers in 1987 and the corresponding budget estimate for 1988 are as follows: 1987, £34.5 million; 1988 (estimated), £42 million.