Dáil Éireann debate -
Tuesday, 5 Nov 1996

Vol. 471 No. 1

Written Answers. - Tax Paid by Farmers.

Joe Costello

Question:

105 Mr. Costello asked the Minister for Finance the amount of income tax and PRSI paid by farmers in each of the years from 1973 to 1995 and to date in 1996. [20302/96]

Minister for Finance (Mr. Quinn)

I am informed by the Revenue Commissioners that the amount of income tax and PRSI paid by farmers in each of the years from 1973 to 1995, in so far as the information is available, and to date in 1996, are estimated as follows:

	Income Tax Payments 1	PRSI 2
	£m
1973	Tax not due for payment 3
1974	Tax not due for payment 3
1975	1.1
1976	3.0
1977	7.0
1978	8.0
1979	16.0
1980	25.0 4
1981	20.0
1982	24.0
1983	32.0
1984	35.0
1985	37.0	3.7
1986	35.0	3.4
1987	34.5	4.5
1988	82.0 5	21.6 5
1989	50.0	11.2
1990	45.0	10.5
1991	36.0 6	10.2
1992	48.0	12.3
1993	56.0 7	23.0 7
1994	90.0 7	28.1 7
1995	70.0	29.9
1996	74.0 8	Not available

Notes:

1 Income tax on farming profits is collected with Schedule D tax generally and the figures shown are to some extent estimated. The figures shown in the table are the tax paid by full-time farmers together with estimated tax paid by trader-farmers on their farming profits.

They do not include the PAYE tax paid on employment income earned by farmers or their spouses. Such tax is included in the overall collection of PAYE and is not distinguishable until after the income tax returns submitted by farmers have been analysed. An analysis of the returns for the income tax years from 1987-88 to 1992-93, the latest available, indicates that the following amount of tax was paid by farmers, including trader-farmers, or their spouses, under the PAYE system for those years:

Tax Year	PAYE Tax
	£m
1987-88	28
1988-89	32
1989-90	32
1990-91	33
1991-92	43
1992-93	56
1993-94	71

Also excluded from the calculations are tax receipts from deposit interest retention tax because it is not possible to apportion that tax between particular classes of taxpayers. Payments of deposit interest retention tax have been made by financial institutions to the Revenue Commissioners since the enactment of the Finance Act, 1986.

2 PRSI for the self-employed including farmers was introduced for the first time with effect from 6 April 1988. The figures shown for 1988 and subsequent years include PRSI, health contributions, employment and training and income levies, as appropriate, as well as arrears of health contributions and levies paid in respect of years prior to 1988. The figures shown for years prior to 1988 are composed of health contributions and levies in so far as they are available.

3 Income tax payable in respect of 1974-75 assessments, the year of commencement of the charge to tax on farming profits, was not due for payment until 1975.

4 The increase in the estimated receipt in 1980 is due mainly to a change in the payment dates so that the 1980 figure represents 1½ years tax.

5 Of the £82 million amount of tax paid in 1988, some £38 million was a once-off payment of tax arrears under the tax amnesty. The corresponding amnesty amount included in the PRSI payments for that year is not identifiable.

6 The yield in 1991 from farmers was reduced by the once-off effect of deferring payment of the balances of 1990-91 tax from 1991 to 1992. Ordinarily these balances would have been paid in 1991 but were deferred to 1992 as a transitional effect of changing the year of assessment for self-employed persons in 1990. The yield from farmers in 1991 was further reduced because of a decrease in farming profits.

7 Included in the tax amounts of £56 million and £90 million paid in 1993 and 1994 are once-off payments of tax arrears under the 1993 tax amnesty amounting to some £1 million and £23.5 million respectively. The corresponding amnesty amounts in the PRSI payments for these years are not identifiable.

8 The only relevant information available for 1996 is the post budget estimate for income tax from farmers of £74 million. The corresponding estimate for PRSI is not available.