Question:
43 Mr. Kenny asked the Minister for Finance if he intends to introduce RSI numbers for farmers in 1994; if so, if he will give details of the proposed conditions for such a scheme; and if he will make a statement on the matter.
Written Answers. - RSI Numbers.
I understand that the Deputy's question relates to the tax clearance requirements as they apply to grants, subsidies and similar type payments.
In 1988 the Government introduced the tax clearance system in respect of grants, subsidies and similar type payments from State and public authorities. The basic aim of this system is to ensure that individuals who benefit from public grants or subsidies have their tax affairs in order.
Generally, the scheme operates on the basis that in the case of 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.
Originally, the scheme excluded payments which were wholly or partly funded by the EC. However, as from 1 September 1991, the Government extended the scheme to such payments other than those made under the Guarantee Section of FEOGA.
It became clear, however, that the application of the tax clearance procedures in this time-frame to farmers in the disadvantaged areas seeking headage payments was likely to cause difficulty for applicants not having a tax reference number. In those circumstances, the Government, while confirming that the extended tax clearance procedures would be maintained and would apply to all applicants for State grants and subsidies including those wholly or partly funded by the EC, decided to provide for a phasing-in, but only as regards headage grant applications by farmers in disadvantaged areas, as follows:
—the tax clearance procedures would be applied gradually so that for 1992 and 1993 applicants for headage payments who did not have a tax reference number would not be required to get one for the purpose of applying for a headage payment;
—steps would be taken to improve and intensify publicity/education to allay any ungrounded fears about what tax clearance means, particularly in the case of persons in receipt of social welfare means-tested benefits and pensions. The Revenue Commissioners, Teagasc and the Department of Agriculture and Food would be involved.
—from 1 January, 1994, all applicants for headage payments must have and quote a tax reference number, as required under the tax clearance procedures.
The gradual phasing in of the tax clearance procedures will provide ample opportunity for people in the disadvantaged areas who may not have a tax reference number to apply to their local tax office for such a number. It should be stressed that from 1 January 1994 all applicants for headage payments will have to comply fully with the tax clearance procedures, and that the application of the extended scheme introduced in September 1991 is otherwise unaffected.