According to documents obtained by the Irish Farmers Journal under the Freedom of Information Act, the Kerry tax district of the Revenue Commissioners has established a unit dedicated to targeting Kerry Co-op shareholders.
On 18 October, just one month before writing to 420 Kerry milk suppliers to inform them of its decision to regard the patronage shares they had received from the co-op in recent years as taxable income, Kerry tax district manager Anne Dullea circulated a memo titled “Kerry co-op project update” to other Revenue officials.
Staff allocated
The document outlines the project’s “success” in recouping additional capital gains or capital acquisition tax from farmers who disposed of patronage shares so far, and recommends taking action on the income tax front. “Work will continue on this with staff now fully allocated to working on the project,” the memo adds.
It also sheds light on the timeline of events, revealing that Dullea had begun to seek opinions from other Revenue offices last summer on the prospect of submitting patronage shares to income tax at their estimated market value during the year they were received – the interpretation that led to farmers receiving unexpected tax bills of thousands of euros last month.
Share value
At that point, only patronage shares issued in 2012 and 2013 were being considered. Based on the number of patronage shares issued during those two years and the value of Kerry Co-op shares traded on the grey market during the same period, Revenue estimated that the total value of shares issued in 2012 and 2013 was €34.5m. “Taking marginal rate of 50% would lead to a liability of €17,293,240 plus interest and penalties,” internal documents state.
Further internal communications on 27 October show a decision to include shares issued in 2011 as well. Revenue faced a 31 December 2016 deadline for pursuit of tax liability for shares issued in 2011.
Read more revelations on the Revenue’s Kerry co-op project and its plan of action for the new year in next week’s Irish Farmers Journal.
Read more
Full coverage of Kerry Revenue shares issue
Scanned Kerry letters saved Anne wrist injury
According to documents obtained by the Irish Farmers Journal under the Freedom of Information Act, the Kerry tax district of the Revenue Commissioners has established a unit dedicated to targeting Kerry Co-op shareholders.
On 18 October, just one month before writing to 420 Kerry milk suppliers to inform them of its decision to regard the patronage shares they had received from the co-op in recent years as taxable income, Kerry tax district manager Anne Dullea circulated a memo titled “Kerry co-op project update” to other Revenue officials.
Staff allocated
The document outlines the project’s “success” in recouping additional capital gains or capital acquisition tax from farmers who disposed of patronage shares so far, and recommends taking action on the income tax front. “Work will continue on this with staff now fully allocated to working on the project,” the memo adds.
It also sheds light on the timeline of events, revealing that Dullea had begun to seek opinions from other Revenue offices last summer on the prospect of submitting patronage shares to income tax at their estimated market value during the year they were received – the interpretation that led to farmers receiving unexpected tax bills of thousands of euros last month.
Share value
At that point, only patronage shares issued in 2012 and 2013 were being considered. Based on the number of patronage shares issued during those two years and the value of Kerry Co-op shares traded on the grey market during the same period, Revenue estimated that the total value of shares issued in 2012 and 2013 was €34.5m. “Taking marginal rate of 50% would lead to a liability of €17,293,240 plus interest and penalties,” internal documents state.
Further internal communications on 27 October show a decision to include shares issued in 2011 as well. Revenue faced a 31 December 2016 deadline for pursuit of tax liability for shares issued in 2011.
Read more revelations on the Revenue’s Kerry co-op project and its plan of action for the new year in next week’s Irish Farmers Journal.
Read more
Full coverage of Kerry Revenue shares issue
Scanned Kerry letters saved Anne wrist injury
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