Vol. 551 No. 4
117 Mr. U. Burke asked the Minister for Finance if there is or was relief or concessions for farmers who were unable to restock their farms within the tax year due to foot and mouth restrictions and were taxed very heavily due to a temporary increase in income which would in part have been utilised to restock; and if he will make a statement on the matter. [10685/02]
I am informed by the Revenue Commissioners that, in accordance with section 657 of the Taxes Consolidation Act, 1997, a full-time farmer is entitled to opt to be charged to income tax for any tax year on the average farming profits of a period of three years. This provision, usually referred to as income averaging, is designed to smooth out the effects of any unusual fluctuations in farming profits by spreading the effect over a period of three years. For example, the restriction on the movement in livestock arising from foot and mouth disease may have caused such a fluctuation in some cases, depending on the farmers' accounts at the end of the year and the normal pattern of selling and restocking. In such cases the option of income averaging is open to the farmers in question, which will ensure that any excess profits are spread over a period of three years.
I would add that in the Finance Act, 2002, changes were made to the existing special tax treatment under section 668 of the Taxes Consolidation Act, 1997, for profits arising from the disposal of livestock due to disease eradication measures, including foot and mouth measures. The period over which a farmer may spread the profit arising from such a disposal, which arises on or after 21 February 2001, was extended from two years to four years. Moreover, under the section a farmer is deemed to be entitled to stock relief equal to the profit assessed, provided he or she reinvests, before the end of the four year period, not less than the amount of compensation which was received on the disposal.
118 Mr. Perry asked the Minister for Finance if his attention has been drawn to the fact that a person (details supplied) has been subject to stamp duty assessment; if the stamp duty can be waived because he is a young farmer; if the penalties can be waived as he was advised by Department officials that if he continued with his studies to obtain certification he would be exempt from charges; and if he will make a statement on the matter. [10686/02]
I am informed by the Revenue Commissioners that the exemption from stamp duty by reference to the young trained farmer scheme as provided for in section 81 of the Stamp Duties Consolidated Act, 1999, as amended, requires compliance with certain conditions, among which are educational qualification in the area of farming. A detailed information leaflet on the relief is available from the Revenue Commissioners.
An extensive range of educational qualifications in the area of farming is provided for under legislation, but it is essential that the farming qualification, including where required the appropriate 80-180 hours Teagasc certificate, is achieved prior to the date of transfer. The legislation provides that where all the conditions are met prior to the date of transfer, including the 80-180 hours Teagasc certificate where required, except that the transferee has completed only the first year of an approved course, the transferee may apply for a refund of stamp duty where the relevant qualification is achieved within three years of the date of execution of the transfer.
In this case the deed of transfer was executed on 22 September 2000 and the certificate for 180 hours training in farming was awarded by Teagasc in April 2001. Regrettably in these circumstances, the applicant does not meet the conditions to qualify for the relief. I am further informed by Revenue that it will review the position in relation to the penalties for late stamping when the stamp duty payment has been lodged with its office.
