asked the Minister for Finance how he proposes to assess farmers for the 1 per cent levy in 1983 and 1984; if the Revenue Commissioners' assessment for income tax will be the gross wage on which the 1 per cent levy is based; if there is a variation in the actual income assessment by the Revenue Commissioners and the actual income earned for tax purposes as audited by an accountant; and if the 1 per cent levy will be adjusted accordingly.
Written Answers. - Tax Assessment.
448.
The 1 per cent income levy is payable for the fiscal year 1983-84 and is chargeable in the case of a farmer on his "reckonable income" i.e. on gross income after deduction of such items as allowable business expenses and stock relief but not depreciation of fixed assets.
Certain items such as capital allowances, losses carried forward, life assurance and other personal reliefs are allowable for income tax purposes, but not for the purpose of the income levy.
For income tax purposes, the following adjustments are made to the profit figure as shown in accounts:
(a) any amounts deducted which are not properly attributable to the carrying on of the trade or profession or which are not chargeable to tax;
(b) any amounts deducted which are prohibited by statute e.g. depreciation of fixed assets.
The question of adjustments to the legislation governing the income levy is a budgetary matter.
449.
asked the Minister for Finance if he is satisfied with the method of assessing farm incomes for health and employment levies; and if he has any proposals to change the method of assessment.
The income levy for all self-employed persons, including farmers, is based on the person's gross income for tax purposes and is comparable to the income basis used for PAYE taxpayers. The same base applies in the case of health contributions and youth employment levy.