asked the Minister for Health how he proposes to assess farmers for health charges in 1983-84; if the Revenue Commissioners assessment for income tax will be the gross wage on which health charges are based; if there is a variation in the actual income assessed by the Revenue Commissioners and actual income earned for tax purposes as audited by an accountant; and if the health charges will be adjusted accordingly.
Written Answers. - Farmers' Health Charges.
458.
I assume the question refers to the collection of health contributions from farmers. Under the revised method of assessment applying in 1983-84 farmers' incomes will be assessed on the basis of profits or gains from farming activities less expenses, such as rent, wages paid out, purchases of seed, fertilizers etc., incurred in earning these profits and less any superannuation contributions that may have been paid.
Unlike the procedures which apply to payment of income tax, deductions for capital expenditure are not allowable in determining reckonable income for health contributions purposes. This applies not only to the self-employed, including farmers, but also to employees in the PAYE sector who, equally, are not entitled to any allowances for capital expenditure when liability for health contributions is being assessed.