Dáil Éireann Debate, Wednesday - 29 September 2010
1261 Deputy Michael Creed asked the Minister for Social Protection if he will clarify the situation regarding demands issuing from his Department to those in receipt of forestry income seeking PRSI contributions in respect of this income; if this is in breach of an agreement that such forestry income was tax exempt; the consultation, if any, he has had with farm organisations on this matter; and if he will make a statement on the matter. [32543/10]
View answerIncome derived from woodlands is exempt from income tax, under Section 232 of the Taxes Consolidation Act, 1997, but is reckonable for PRSI. The Department collects these contributions directly, under the provisions of Statutory Instrument 126 of 1998. Accordingly income derived from such sources is, in general, exempt from income tax but all such income, in excess of €3,174.00 per annum, is liable to PRSI at a rate of 3% subject to a minimum payment of €253.00. I have not had any discussions with farm organisations in relation to this matter.
