Tax clearance is applied to all persons applying for grants, subsidies and similar type payments in excess of £500 from the State and public authorities. In the case of payments between £500 and £5,000, the applicant is required to furnish his tax reference number, to indicate the tax office dealing with his affairs and to confirm that, to the best of his knowledge, his tax affairs are in order. In the case of payments of £5,000 or more, the applicant is required to furnish a current tax clearance certificate from the Revenue Commissioners.
Tax clearance procedures are to be extended to disadvantaged areas headage payments from 1 January 1994. This was originally intended for introduction in March 1992 but an extension was granted to allow farmers time to obtain tax reference numbers.
In the interim, the tax clearance procedures have been adapted specifically to accommodate those applicants for headage payments who do not have an RSI number for tax purposes but who are also receiving a means-tested social welfare payment. Under the adapted scheme, an applicant for headage payments of between £500 and £5,000 will be able to quote the RSI number under which the means tested social welfare payments are made. This adaptation will deal with the concerns raised in the Deputy's question in relation to small farmers in receipt of unemployment assistance.