Edward Nealon
Question:339 Mr. Nealon asked the Minister for Agriculture, Food and Forestry the exact tax requirements of farmers before they are paid grants for which they have qualified; and if he will make a statement on the matter.
Written Answers. - Farmers Tax Requirements.
The tax clearance system, which was introduced in 1988, applies to all grants, subsidies and similar type payments from State and public authorities. The aim of the system is to ensure that individuals who benefit from public grants or subsidies have their tax affairs in order. From 1 September 1991 this system was extended to cover all payments of over £500, except payments made under the Guarantee Section of FEOGA.
The general position is that in order to qualify for grants between £500 and £5,000 the applicant must indicate on his grant application the tax district dealing with his affairs, furnish his tax reference number and indicate that, to the best of his knowledge, his tax affairs are in order. In the case of grants of £5,000 or more the applicant is required to produce a tax clearance certificate from the Revenue Commissioners.
In view of the difficulties this time frame posed for some farmers, particularly in the disadvantaged areas, the Government decided early in 1992 to postpone, until January, 1994, these requirements for headage grant applications by farmers in disadvantaged areas who did not yet have tax reference numbers. In addition steps are being taken to provide more comprehensive information to farmers in an effort to allay any fears about tax clearance particularly for those in receipt of social welfare means-tested benefits and pensions.