James McDaid
Ceist:52 Dr. McDaid asked the Minister for Finance if he will make a special case for mushroom growers (details supplied) in the Border areas in view of the fact that this industry is now coming under pressure. [11543/95]
Written Answers. - Mushroom Growers.
It is presumed that the Deputy is referring to the arrangements for the collection of income tax in respect of the earnings of pickers employed in the mushroom industry. The Revenue Commissioners examined the method of taxing the remuneration of mushroom pickers in the early 1990s. They found that some mushroom growers were correctly operating the normal PAYE-PRSI system in respect of their employees, while others were either making deductions under the farmers casual scheme without Revenue approval or were not making any deductions.
The Revenue Commissioners concluded that the normal PAYE-PRSI system was properly applicable to mushroom pickers. Nevertheless, following discussions with representatives of the mushroom industry and in recognition of the difficulties which individual growers might experience in moving to full PAYE-PRSI, Revenue agreed to the phased extension of the normal PAYE-PRSI system to all mushroom growers over a two year period concluding in April 1994.
It should be noted that the normal PAYE-PRSI system is not only the appropriate system for taxing the remuneration of mushroom pickers, but it is less onerous for the mushroom growers to administer and avoids possible hardship for mushroom pickers which could otherwise arise in meeting their tax liability at the end of the tax year. It does not, of course, in any way alter the income tax liabilities of the mushroom pickers.
In the circumstances, I do not propose to make a special exemption for the mushroom industry in respect of the application of the normal PAYE-PRSI system. However, in replies to recent representations about the taxation of workers in the mushroom industry I offered a meeting between the Revenue Commissioners and the representatives of the mushroom industry to hear their concerns on this matter and to clear up any outstanding difficulties in relation to the operation of the income tax system. To date the mushroom industry has not availed of this offer.