Kerry TDs told the Irish Farmers Journal that the constituency’s five Dáil representatives met approximately 15 Kerry co-op shareholders in Farranfore on Monday.
The farmers requested assistance from the TDs to highlight their concerns about the Revenue’s recent decision to submit co-op patronage shares to income tax at their estimated resale value in the year they were received.
“They feel the Revenue’s approach is both false and unfair, and creates a dangerous precedent for other co-ops,” Fianna Fáil Kerry TD John Brassil said. The farmers told the TDs that even if a determination was made to treat preference shares as income rather than capital, it should be done going forward and not retrospectively.
If they knew they had a €15,000 or €20,000 tax bill coming up, they would have made different investment decisions on their farm
“If they knew they had a €15,000 or €20,000 tax bill coming up, they would have made different investment decisions on their farm,” Brassil said.
He added that the five TDs had agreed to table a series of priority parliamentary questions to the Minister for Finance as soon as the Dáil resumes on 17 January.
They are hoping to secure a hearing with Michael Noonan, whose Limerick city constituency overlaps with the Kerry milk pool.
Brassil said the questions would “hopefully have the effect of pointing out all the different pitfalls of pursuing this issue” and convince Revenue officials of changing their position.
In particular, he argued that the 400 farmers singled out by the Revenue to receive income tax claims on the estimated value of their 2011 patronage shares were not treated fairly. “Under tax law, everybody has the right to be treated equally,” he said.
It could destroy the co-op movement
Independent Kerry TD Michael Healy-Rae said he and his four constituency colleagues were “very united in the defence of the farming community” and would continue to act together along a shared programme of work beyond this set of parliamentary questions.
“It’s not about the 400 letters, it’s about the future of the co-op movement in Ireland,” Healy-Rae said, adding that he saw the recent developments with Kerry co-op shareholders as an indication that the Revenue would soon target share schemes operated by other co-op. “It could destroy the co-op movement,” he warned.
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3,500 Kerry suppliers to get tax bills this year
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Exposed: Revenue’s Kerry co-op project
Full coverage: the Revenue’s Kerry co-op shares project
Kerry TDs told the Irish Farmers Journal that the constituency’s five Dáil representatives met approximately 15 Kerry co-op shareholders in Farranfore on Monday.
The farmers requested assistance from the TDs to highlight their concerns about the Revenue’s recent decision to submit co-op patronage shares to income tax at their estimated resale value in the year they were received.
“They feel the Revenue’s approach is both false and unfair, and creates a dangerous precedent for other co-ops,” Fianna Fáil Kerry TD John Brassil said. The farmers told the TDs that even if a determination was made to treat preference shares as income rather than capital, it should be done going forward and not retrospectively.
If they knew they had a €15,000 or €20,000 tax bill coming up, they would have made different investment decisions on their farm
“If they knew they had a €15,000 or €20,000 tax bill coming up, they would have made different investment decisions on their farm,” Brassil said.
He added that the five TDs had agreed to table a series of priority parliamentary questions to the Minister for Finance as soon as the Dáil resumes on 17 January.
They are hoping to secure a hearing with Michael Noonan, whose Limerick city constituency overlaps with the Kerry milk pool.
Brassil said the questions would “hopefully have the effect of pointing out all the different pitfalls of pursuing this issue” and convince Revenue officials of changing their position.
In particular, he argued that the 400 farmers singled out by the Revenue to receive income tax claims on the estimated value of their 2011 patronage shares were not treated fairly. “Under tax law, everybody has the right to be treated equally,” he said.
It could destroy the co-op movement
Independent Kerry TD Michael Healy-Rae said he and his four constituency colleagues were “very united in the defence of the farming community” and would continue to act together along a shared programme of work beyond this set of parliamentary questions.
“It’s not about the 400 letters, it’s about the future of the co-op movement in Ireland,” Healy-Rae said, adding that he saw the recent developments with Kerry co-op shareholders as an indication that the Revenue would soon target share schemes operated by other co-op. “It could destroy the co-op movement,” he warned.
Read more
3,500 Kerry suppliers to get tax bills this year
Revenue may target 2013 Kerry spin-out
Exposed: Revenue’s Kerry co-op project
Full coverage: the Revenue’s Kerry co-op shares project
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