Vol. 462 No. 8
79 Mr. Callely asked the Minister for Finance if the Government is satisfied with the income tax receipts from the farming sector and the PAYE sector; the consideration, if any, that has been given to obtaining a bigger yield from the farming sector; and if he will make a statement on the matter. [5721/96]
80 Mr. Callely asked the Minister for Finance the consideration, if any, that has been given to introducing greater equity and reducing the disparity that exists in the 1994 net receipts of income tax of £66.5 million from the farming sector, compared with £3,259.1 million from the PAYE sector; and if he will make a statement on the matter. [5722/96]
I propose to take Questions Nos. 79 and 80 together.
The information which I gave the House on 14 December 1995 concerning the amount of tax paid by both the farming sector and the PAYE sector is the most recent information available.
The net receipts of income tax of £66.5 million from the farming sector, compared with £3,259.1 million from the PAYE sector must be seen in the context of the relative numbers of taxpayers in the PAYE and farming sectors. It should also be noted that the amount attributed to the PAYE sector includes the tax paid under PAYE on the employee income of farmers. Such tax is included in the overall collection of PAYE and is not distinguishable until after the income tax returns submitted by farmers have been analysed.
An analysis of the returns for the income tax year 1992-93, the latest available, indicates that some £56 million in tax was paid by farmers, including farmers who have other trading income, or their spouses, under the PAYE system for that year.
Farmers are assessable to tax on farming profits on actual income on the same basis as other self-employed taxpayers. The normal self-employed allowances may be offset against farming profits as well as special provisions in relation to stock relief and income averaging. In common with other self-employed taxpayers, farmers are subject to the various compliance and audit arrangements which apply under the self-assessment system. I am informed by the Revenue Commissioners that the evidence currently available from self-employed audits indicates that the compliance levels of farmers are comparable with those of other self-employed taxpayers.
