Dáil Éireann debate -
Tuesday, 23 Jan 1996

Vol. 460 No. 3

Written Answers. - Farm Incomes Figures.

Brian Cowen

Question:

98 Mr. Cowen asked the Minister for Finance if he will give details of farm income for the most recent year for which figures are available; the way in which many farmers are outside the tax net; the number of farmers with a tax liability of less than £5,000, £5,000 to £10,000, £10,000 to £15,000, £15,000 to £20,000; the number of farmers with income less than £5,000, greater than £35,000, £5,000 to £10,000, £10,000 to £15,000, £15,000 to £20,000, £20,000 to £25,000, £25,000 to £30,000, £30,000 to £35,000, £35,000 to £40,000, £40,000 to £45,000, £45,000 to £50,000 and £50,000 or more; and if he will make a statement on the matter. [19136/95]

Minister for Finance (Mr. Quinn)

In common with all self-employed taxpayers, the income base on which farmers' income tax liability is reckoned is the gross income from all sources before adjustments are made in respect of capital allowances, qualifying deductible expenditure and personal allowances and reliefs.

The latest year for which income distribution information on farmers is available is the income tax year 1992-93. The gross income of identified full-time farmers who were assessed to tax for 1992-93 was £590 million, excluding employment income of £203 million liable to tax under PAYE.

The corresponding income of identified trader-farmers who were assessed to tax for the same year was £271 million. This amount includes income from trades and professions other than farming and is not distinguished in the total.

The new tax arrangements introduced in 1988 for all self-employed persons, including farmers — generally referred to as the self assessment system — imposed on each chargeable person the obligation to pay preliminary tax if liable and to furnish, without notification from an inspector of taxes, a completed tax return. An inspector of taxes can, however, by written notification exclude an individual from the obligation to file a return.

The number of individuals with income from farming who were assessed to tax in respect of the income tax year 1992-93 is estimated at 81,000. A further 19,000 farmers are on tax record as having been notified by inspectors of taxes that a tax return is not required from them until their position is further reviewed.

Other individuals on the tax record are not identifiable as having income from farming, such as individuals with a relatively small income from farming which is taxed through the PAYE system and not distinguished.

Following is a distribution of the numbers of full-time farmers by range of tax liability and by range of gross income in respect of the income tax year 1992/93 in so far as it is available.

Range of Tax Liability	Numbers in Range
£
Under 5,000	58,765*
5,001 — 10,000	1,915
10,001 — 15,000	466
15,001 — 20,000	180
Over — 20,000	196
Total	61,522

* Included in this figure are approximately 30,000 farmers with no tax liability.

Range of Gross Income	Numbers in Range
£
Under 5,000	23,123
5,001 — 10,000	17,791
10,001 — 15,000	9,679
15,001 — 20,000	4,634
20,001 — 25,000	2,483
25,001 — 30,000	1,408
30,001 — 35,000	853
35,001 — 40,000	471
40,001 — 45,000	311
45,001 — 50,000	184
Over 50,000	585
Total	61,522

Income and tax from employments which are subject to PAYE are excluded from the ranges shown in the tables.