asked the Minister for Finance the amount of tax paid by those farmers who have other employment and thus pay all their tax under the PAYE system and whose tax free allowances are reduced as a result of farming, for the years from 1974 to 1984 inclusive; and if this figure is included in the amount given as the return of tax from farmers annually.
Ceisteanna — Questions. Oral Answers. - Farmer Taxation.
11.
Presumably the Deputy has in mind the tax paid as a result of the restriction of personal allowances in accordance with the provisions of section 28 of the Finance Act, 1974. The tax paid under these circumstances is collected with Schedule E tax generally and statistics are not available which would enable the information requested to be given separately. However, it is tentatively estimated that the total amounts of income tax paid as a result of the restriction were of the order of £1 million per annum from 1974 to 1979 inclusive and £¾ million per annum from 1980 to 1982 inclusive. The reduction in the yield after 1979 can be attributed to the decrease in the number of persons affected by the provisions of the section as a consequence of the lowering of the rateable valuation threshold by reference to which farming profits became chargeable to income tax.
Section 11 of the Finance Act, 1983, extended the charge to all farming profits irrespective of rateable valuation and section 120 of that Act provided for the repeal of section 28 of the Finance Act, 1974. Accordingly, the question of the amount of tax resulting from the provisions of the section in 1983 and 1984 does not arise.
The estimated net receipt of tax resulting from the provisions of section 28 was not included in the estimates of the annual income tax paid on farming profits.
12.
asked the Minister for Finance the amount of tax paid by those farmers who are also self-employed in other trades or professions for the years from 1974 to 1984; and if this figure is included in the amount given as the return of tax from farmers annually.
Income tax on farming profits is collected with Schedule D tax generally. Accordingly, separate figures are not available for tax on farming profits. However, I can give the estimated amounts of income tax in respect of farming profits which were paid in each of the years mentioned by farmers who, or whose spouses, carry on another trade or profession and which are included in the estimates of the annual income tax paid on farming profits:
|
Year |
Income tax |
|
£m |
|
|
1974 |
Tax not due for payment(1) |
|
1975 |
1.0 |
|
1976 |
1.5 |
|
1977 |
3.0 |
|
1978 |
4.0 |
|
1979 |
4.0 |
|
1980 |
7.0(2) |
|
1981 |
5.0 |
|
1982 |
5.0 |
|
1983 |
5.0 |
|
1984 |
5.0 |
Notes:
(1)Income tax payable in respect of 1974-75 assessments, the year of commencement of the charge on farming profits, was not due for payment until 1975.
(2)The increase in the estimated receipt in 1980 is due mainly to a change in the payment dates so that the 1980 figure represents 1½ years' tax.
There has been a lot of controversy about taxation of farmers over the years but the annual figures given relating to the amount of tax collected from farmers never gives an estimate of the tax collected from farmers under other headings. Would the Minister not feel that in future years when he announces the figure as being the amount collected from farming taxation he should add those figures as well in order to give an idea to the general public as to the real amount collected from people in the farming area?
It is negligible anyway.
As I said in reply to Question No. 12, the figures for the amounts we are speaking of are included in the Estimates of the annual income tax paid on farming profits. The figures I mentioned in my reply to Question No. 11 are not included in that overall figure.