Tuesday, 1 April 2014

Questions (477)

Michael Healy-Rae

Question:

477. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine if he will give an assurance to farmers who leased out all their land and entitlements for this year that they will not face serious tax bills if they transfer their payments (details supplied); and if he will make a statement on the matter. [15356/14]

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Written answers (Question to Agriculture)

This issue arises where entire holdings have been leased out with entitlements for a period which includes 2013. In order to preserve the value of these entitlements for the new direct payment scheme, lessors need to transfer them permanently before 15 May 2014 to a person who is deemed to be an 'active farmer'.

Officials from my Department have had discussions with the Department of Finance regarding the particular tax implications of the transfer of leased-out entitlements. It has been confirmed that, in accordance with tax law, this will give rise to a tax liability. I have written to the Minister of Finance outlining the situation and asking him to consider whether there are any options in this regard.