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Dáil Éireann debate -
Tuesday, 4 Apr 2000

Vol. 517 No. 3

Written Answers. - Tax Assessment.

Phil Hogan

Question:

157 Mr. Hogan asked the Minister for Finance if it is possible for farmers to be allowed from the three year averaging of their income for the purposes of income tax assessment without penalty. [9632/00]

There are no penalties for farmers who opt to discontinue assessment of tax under averaging of farm profits. In such cases the two years of assessment prior to the last averaging year are reviewed and if the existing assessment for either or both years is less than the amount of the assessment for the last averaging year, an additional assessment for the difference is made for the year or years affected. The adjustment to the assessments on review for the two years specified merely ensures that the total amount charged to tax for those two years and the following year, which is the preceding year of assessment for which the farmer opts out or is deemed to opt out, will not be less than the profits shown in the accounts for those three years. The farming sector is the only sector in the State that can avail of income averaging for the assessment of tax on profits and I have no plans to amend the current legislation covering income averaging for farmers.

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