asked the Minister for Finance the basis on which the Revenue Commissioners issued income tax assessments to farmers; if due allowances were made for allowable expenses and personal allowances; and if he will make a statement in the matter.
Written Answers. - Farmers' Tax Assessments.
162.
I am informed by the Revenue Commissioners that in the period from March to June, 1975, return forms were sent to farmers who appeared to be chargeable to income tax on their farming profits because they occupied farm land with a rateable valuation of £100 or more. They were asked to indicate the basis of assessment for which they were opting for the year 1974-75. Where returns and accounts were completed, assessments were made giving all the deductions and allowances to which they proved title.
The Revenue Commissioners say that a large number of farmers, however, failed to complete returns or claim personal allowances. In the absence of returns or claims for allowances inspectors of taxes had to make estimated assessments in the relevant cases. These assessments were made on the basis (a) that the net profit would not in any case exceed £40 per £1 of rateable valuation, and (b) that the single personal allowance of £500 would be due.
Appeals were entered against many of the assessments and, where completed returns were subsequently submitted, the assessments were adjusted as necessary.