The first part of this measure deals with the subject of Income Tax, and I would like to devote a few minutes to the incidence of this tax in so far as it affects farmers. The Seanad will understand me when I say that I do not stand as an advocate of farmers not paying income tax like everyone else. I agree with John Stuart Mill in that, and I think that farmers, like other citizens, should contribute according to their means to the upkeep of the State. To come down to particulars, the farmer, as we know him in this country, is charged under Schedule A 3/- in the £1, and under Schedule B 3/- in the £1. He is charged on his Poor Law valuation, or, in other words, he is charged twice. In the old days before the Great War, when the farmer was supposed to be pulling the devil by the tail, he was only charged under Schedule A. During the Great War farmers were supposed to be making extravagant profits, so they were charged income tax also under Schedule B. The reason given for this change was that farmers were charged under Schedule A for ownership and under Schedule B for occupation. There was some doubt, I suppose, in the mind of the legislature when that charge was made under Schedule B, so they arranged that in certain conditions farmers were to be allowed a rebate of income tax under Schedule B, but to obtain rebates they had to follow the prescribed form. I have this form here. It is rather difficult to obtain copies of it, but it certainly is more difficult to fill it up.
We know the kind of person the average farmer is. We who have been associated with him all our lives know the mentality of the average farmer. I wish to discuss with the Seanad for a few minutes the form on which farmers must apply for relief from double taxation in connection with Schedule A. The first page is taken up with notes. I need not worry about the first one. The second note is rather peculiar. A farmer has to send in his account every year, and the direction is that "The money figures of ‘sales' on page 5 of the account must be the gross total amount of all sales effected in the year of account, whether the money has all been received by the end of the year or not." Then: "Purchases should be given as the net cost of the purchases effected in the year, whether the farmer has actually paid the money by the end of the year or not." I do not know if the average farmer could quite understand what he is asked to do in filling in this form, but he must bear point No. 2 in mind.
The note goes on to say: ‘Similarly the receipts and expenses on page 6 should be given on the basis of the amounts accruing in respect of the year of account and not merely upon a ‘Cash received or disbursed' basis." Well, I doubt very much if the average farmer would understand what that means. It says later on: "The actual expenses incurred in the ordinary farming operation must not include anything in respect of improvements by way of reclamations, drainage, new fences, addition to farm buildings or other capital expenditure." That seems to me to be rather against the proper development of a man's farm, but that is a question for further consideration. At the end of the page the form goes on: "The Commissioners may accept copies of them in lieu of accounts drawn up on page 5 and page 6 of this form; but in any event the particulars required by pages 2, 3, 4, and 7 of this form should be furnished and the accounts should be certified in the manner set out." There are then further directions. Knowing the farmer as we know him I doubt very much if he could follow those directions when filling up this form.
Turning to page 2, the first thing the farmer has to do is to give the name of the townland, then the area of his part of that particular townland. If he happens to have land in more than one townland he has to give the name of the second townland, and he has to give the area in statute acres. He has then to discriminate in another column between the valuation on land and the valuation on houses. He has in another column to fill up particulars of the tenure of each holding. For instance, he has to give the purchase annuity under the 1903 Act. He may have bought out his farm under different sections of different Land Acts, so that he must put in the various Land Acts under which he bought his holding. He puts down the payments of purchase annuities to the Land Commission under the 1903 or 1923 Acts. If he has a lease he has to put in particulars of the lease. He may hold under fee farm grant, and he must put in particulars of that. When he has done all this he has probably got a fit. He has then to put in what portion of each item is utilised for the purposes of husbandry. That is another conundrum.