Dáil Éireann díospóireacht -
Tuesday, 16 May 1995

Vol. 452 No. 8

Written Answers. - Headage/Farm Investment Schemes.

Seamus Brennan

Ceist:

66 Mr. S. Brennan asked the Minister for Agriculture, Food and Forestry his views on the Revenue Commissioners having full access to his Department's files following confirmation that the revenue and social insurance tax clearance rules for headage and farm investment grant scheme payments were found to be illegal under European Union law. [8808/95]

Matt Brennan

Ceist:

215 Mr. M. Brennan asked the Minister for Agriculture, Food and Forestry the circumstances under which a farmer is required to present an RSI number in order to receive headage payments. [8841/95]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I propose to take Questions Nos. 66 and 215 together.

The matters to which the Deputies refer have been the subject of extensive and continuing discussion between the European Commission and the Irish authorities, involving my Department, the Department of Finance and the Office of the Attorney General. The position taken by the Irish authorities in these discussions has been that, in view of the fact that the headage and farm investment grant schemes are non-compulsory for member states, the requirements in relation to tax compliance and submission of an RSI number are consistent with European Union Law. Failure to meet the requirements in relation to tax compliance will not prevent payments where a farmer meets the conditions of the scheme but it will lead to an examination of the farmer's tax affairs by the Revenue Commissioners. Provision for the transmission of the information required for such an examination has been made in the 1995 Finance Bill. The legal possibilities of offsetting payments against any outstanding tax liability are also being considered.

All applicants for headage or farm investment grants of £500 or more must supply an RSI number. Submission of an RSI number is essential to properly process an application.

Experience of the 1994 headage and farm investment schemes is that there was a very high level of compliance by participants in relation to tax clearance arrangements and the provision of RSI numbers.