Dáil Éireann Debate, Tuesday - 14 February 2017
134. Deputy Catherine Connolly asked the Minister for Finance the status of the European Commission's investigation into overclaim of VAT within the poultry sector; and if he will make a statement on the matter. [6682/17]
Amharc ar fhreagra135. Deputy Catherine Connolly asked the Minister for Finance if the Revenue Commissioners informed the European Commission in the summer of 2016 that it was investigating overclaim of VAT in the poultry sector; if so, if he will provide a copy of that report; and if he will make a statement on the matter. [6683/17]
Amharc ar fhreagra157. Deputy Mattie McGrath asked the Minister for Finance the number of years the Revenue Commissioners have been aware of the practice by poultry processors of artificially inflating feed prices; if the Revenue Commissioners were ever notified of a feed price increase by a processor prior to the processor proceeding with the increase; and if he will make a statement on the matter. [7226/17]
Amharc ar fhreagraI propose to take Questions Nos. 134, 135 and 157 together.
The Deputies will be aware that I made provision in the Finance Act 2016 for the exclusion by Ministerial Order of any specified agricultural sector where the business structures or models employed result in a systematic excess of flat-rate addition payments over input costs borne by flat-rate farmers within that sector.
I introduced this measure after Revenue brought to my attention that the interaction of the flat rate scheme for farmers and the normal VAT system was being exploited in a particular agricultural sector to achieve overcompensation for flat rate farmers on their VAT input costs. I am advised by Revenue that because of their obligation to protect the confidentiality of taxpayer information they cannot comment on claims concerning the prices charged by a taxpayer in the course of their business. The Deputies will be well aware that prices are a matter to be agreed between buyers and sellers and that many factors influence price levels, including quality, consistency, traceability, etc.
I am advised by Revenue that they responded to a number of questions raised by the Commission on the application of the Flat-Rate Scheme for Farmers in the agricultural sector in Ireland. I am also advised that Revenue cannot make available a copy of their response to the Commission's questions because of their legal obligation to protect the confidentiality of taxpayer information. Deputy Connolly will appreciate that in certain instances the number of taxpayers in a particular sector or sub sector is such that they could be identified in commentary relating to that sector or sub sector.
The status of the Commission's enquiries into this matter is a matter for the Commission and I regret that I am unable to assist Deputy Connolly on this point.
