asked the Minister for Finance where a farmer depopulates his herd under the tuberculosis eradication scheme, if the reactor grants will be treated as capital income or cash income; and if he will make a statement on the matter.
Written Answers. - Reactor Grants.
100.
Moneys paid in respect of the grants in question are regarded as income, and are therefore reckonable in the calculation of the taxable profits of the farm for income tax purposes.
I should point out that costs arising from disease eradication measures either diminish overall taxable farming profits or contribute to tax losses which are available to be carried forward against future taxable profits, subject to the normal rules. Receipts of grant reduce losses or moderate profit reductions in these circumstances. Therefore, it is logical and appropriate that sums received in respect of these grants should be reckonable for income tax purposes.