Dáil Éireann Debate, Wednesday - 17 January 2024
1165. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine if the payment of €1,000 per hectare to forest owners under the Woodland Environmental Fund is income tax free; and if he will make a statement on the matter. [56367/23]
View answerThe objective of the Woodland Environment funding (WEF) is to facilitate the planting of more native woodlands by providing an access point to business to part fund the establishment of these forests . It is a once off payment of €1,000 hectare to the forest owner to top up premiums paid by my Department.
As such it may be exempt from Tax by virtue of section 18 Finance Act 1969 and from Income Tax and Corporation Tax by virtue of section 232(2) Taxes Consolidation Act 1997.
Section 232(2) TCA 1997 states
(2) Except where otherwise provided by section 75, the profits or gains arising from the occupation of woodlands managed on a commercial basis and with a view to the realisation of profits shall not be taken into account for any purpose of the Tax Acts.
It is worth noting that the final determination of any tax exemption rests with the Revenue Commissioners.
