Dáil Éireann Debate, Tuesday - 2 February 2010
419 Deputy Michael Creed asked the Minister for Social and Family Affairs the number of farm partnerships established to have existed retrospectively by the scope section of her Department since June 2008 to date in 2010; and if she will make a statement on the matter. [3934/10]
View answer420 Deputy Michael Creed asked the Minister for Social and Family Affairs the number of farm spouses, identified as having participated in a farm partnership retrospectively, that paid PRSI contributions retrospectively to reconcile their record; the monetary value of these payments; and if she will make a statement on the matter. [3935/10]
View answerI propose to take Questions Nos. 419 and 420 together.
Spouses who are actively engaged in a commercial partnership, including the operation of a farm, are treated as individual self-employed contributors and are thus liable to social insurance contributions. In this way, both spouses incur a liability to pay self-employed PRSI, and build up entitlement towards a contributory state pension and other social welfare benefits. On foot of a Programme for Government commitment, an information booklet,’Working with your spouse: how it affects your social welfare contributions and entitlements’, was developed between the Department of Social & Family Affairs and the Revenue Commissioners to set out the social welfare and tax implications of families co-working in a shared business. The booklet was published on 25th of June, 2008. The booklet clarified existing procedures in relation to the recognition of commercial partnerships between husbands and wives for social insurance purposes, including retrospective payment of social insurance, but did not involve any change in existing policy or administration.
To date, 401 commercial partnerships have been found to exist in farm cases. In cases where a commercial partnership is found, the income arising from the partnership is split between both parties and their PRSI liabilities recalculated. Any additional PRSI due is then collected from the contributor. To date, PRSI liabilities totalling €795,006 have been determined in respect of 293 of these cases with a further 32 contributors having no liability. The remaining 76 cases are in the process of being finalised.
