Vol. 417 No. 9
113 Mrs. T. Ahearn asked the Minister for Finance the reason an income tax credit was not received by a person (details supplied) in County Tipperary for land tax payment; if such credit can now be allowed; and if he will make a statement on the matter.
I have been advised by the Revenue Commissioners that section 16 of the Finance Act, 1986, provides that individuals who are chargeable to income tax in respect of profits or gains from farming are entitled to be given a credit in respect of farm tax paid by them in the year of assessment against the income tax liability arising from such profits and gains, on the production of proof of farm tax actually paid.
However, section 3 of the Finance Act, 1987, provides that farm tax for 1986, paid on or before 30 June 1987, may be allowed only as a credit against 1986-87 income tax payable. Farm tax paid after 30 June is not allowable as a credit in computing profits for tax purposes for any year.
The inspector of taxes has no record of having received a claim for credit in respect of land tax paid by the taxpayer. In any event, as the tax is stated to have been paid on 5 October 1988, section 3 of the Finance Act, 1987 applies and credit is not available.
