Dáil Éireann díospóireacht -
Tuesday, 3 Mar 1992

Vol. 416 No. 6

Written Answers. - Tax Clearance System.

Enda Kenny

Ceist:

63 Mr. Kenny asked the Minister for Finance if he will remove the requirement for RSI numbers to farmers who receive less than £2,000 headage payments or who are in receipt of social welfare payments having been means tested; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

In 1988 the Government introduced the tax clearance system in respect of grants, subsidies and similar type payments from State and public authorities. The basic aim of this system is to ensure that individuals who benefit from public grants or subsidies have their tax affairs in order.

As from 1 September 1991, the tax clearance system was extended to include all grants and subsidies over £500, other than payments under the guarantee section of FEOGA.

In the case of grants between £500 and £5,000 the applicant must indicate on his grant application the tax district dealing with his affairs, furnish his tax reference number and indicate that, to the best of his knowledge, his tax affairs are in order. In the case of grants of £5,000 or more the applicant is required to produce a tax clearance certificate from the Revenue Commissioners.

I do not propose to increase the threshold of £500 above which the tax clearance procedures apply. However, I am examining the procedures as they apply to applicants for headage payments who are also in receipt of certain means-tested social welfare payments and expect to make an announcement about this matter shortly.