I propose to take Questions Nos. 505, 575, 576 and 577 together.
The EU Commission has raised certain issues in relation to the application of tax clearance to headage payments and following discussions with the Commission, who have decided not to pursue proceedings under Article 169 of the Treaty of Rome, certain modifications were made to the tax clearance rules for headage payments. Applicants for payments over £500 and less than £5,000 are requested to supply their RSI number and a declaration that their tax affairs are in order and applicants for payments over £5,000 are requested to provide a tax clearance certificate. Failure to supply a declaration or tax clearance certificate may lead to a delay in processing the application and to an examination of the applicant's tax affairs by the Revenue Commissioners. Payment will not be refused. In relation to RSI the EU Commission has agreed that failure by the applicant to supply and RSI number will result in the application not being accepted.
The modified rules also apply to applicants for farm development grants who must however produce a tax clearance certificate in respect of contractors engaged by the applicant.