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Dáil Éireann díospóireacht -
Tuesday, 23 Nov 1999

Vol. 511 No. 3

Written Answers. - VAT Refunds.

Paul Connaughton

Ceist:

196 Mr. Connaughton asked the Minister for Finance if the Revenue Commissioners have carried out recent investigations regarding the payment of flat rate VAT refunds on imported lamb at slaughter plants; if so, the outcome of these investigations; the amount of VAT, if any, recovered by the State; and if he will make a statement on the matter. [24442/99]

Paul Connaughton

Ceist:

197 Mr. Connaughton asked the Minister for Finance the names of the lamb slaughter factories where the Revenue Commissioners recently carried out investigations regarding the payment of the flat rate of VAT on lambs from outside the State. [24443/99]

I propose to take Questions Nos. 196 and 197 together.

I am informed by the Revenue Commissioners that investigations have been carried out on a number of lamb slaughter houses in connection with the payment of the flat rate VAT refunds on lambs sourced from outside the State. Investigations in respect of a number of slaughter houses have been completed and underpayments of VAT of the order of £300,000 have been agreed with the traders concerned. investigations are ongoing in other plants.

I am informed by the Revenue Commissioners that due to normal confidentiality requirements it is not appropriate to disclose the names of the lamb slaughter houses which have been the subject of these investigations.

Paul Connaughton

Ceist:

198 Mr. Connaughton asked the Minister for Finance the amount of flat rate VAT refunds paid on lamb to sheep farmers for each of the years from 1994 to date. [24444/99]

I am informed by the Revenue Commissioners of the following:

The farmers' flat rate VAT refund scheme seeks to compensate, on an overall basis, those

farmers who are not registered for VAT in respect of the VAT charged to them on their pur chases of goods and services. The scheme is optional and works through allowing the participating farmers to add the flat rate percentage to their prices when selling to VAT registered customers, for example, co-operatives, meat factories, etc. These customers in turn then treat the addition as a normal business input in their periodic VAT returns.
Such returns are not compiled in a manner which would enable the amount of these indirect
refunds to sheep farmers in respect of lamb to be identified. On the basis of aggregate economic
data for the agricultural sector as a whole it's estimated that the amounts refunded to all participating farmers by their registered customers from the start of 1994 to end October 1999 are: 1994, £69.78 million; 1995, £73.24 million; 1996, £77.07 million; 1997, £85.82 million; 1998, £95.17 million; 1999, £87.28 million (to end October).
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