John Comer, president of the ICMSA, has said he would support Kerry co-op’s decision to take a “test case” against Revenue in the Kerry co-op patronage share taxation issue.

The case would evaluate the legal strength of Revenue’s assertion that farmers may have unwittingly incurred a significant tax liability through the purchase of patronage shares from Kerry Co-op.

Two weeks ago it emerged that Revenue had written to some 400 of Kerry’s 3,500 milk suppliers outlining a tax liability on patronage shares relating to the years 2011, 2012 and 2013.

The letter urged individuals to engage with Revenue within a 21-day time frame, saying that some farmers will be liable and some will not.

21-day notice is not enough

Speaking on RTÉ Radio One’s Morning Ireland, Comer said his members would support the decision to take a test case as 21 days is not enough notice for farmers to engage with Revenue on this issue.

“We would support a test case being brought,” he said. “21 days’ notice to engage with Revenue is not enough. We understand it would usually be 60 days’ notice.”

There is currently an ambiguity in terms of the perceived obligations of our members

It is believed that a test case would effectively freeze the 21-day time frame farmers have been given to respond to the letters they received.

Comer also said that the case should go in front of the Tax Appeals Commission.

“Revenue’s actions should be appealed,” he said. “There should be an agreement that people who believe they are tax compliant should have a clear line towards Revenue.

“There is currently an ambiguity in terms of the perceived obligations of our members”.

After initially pouring cold water on Kerry’s proposal to take a test case, last Wednesday Revenue said it would contemplate an individual farmer bringing a test case to be heard through the courts.

The Joint Committee on Finance, Public Expenditure and Reform, and the Taoiseach will meet today (Wednesday) at 2pm to discuss the issue, with Committee chair John McGuinness saying farmers “feel they have been blindsided by these letters”.

Pat O'Toole contributed reporting for this story

Read more

Finance Committee to discuss tax bills received by Kerry Co-op shareholders