As previously revealed by the Irish Farmers Journal, Revenue is now attempting to submit patronage shares received by Kerry farmers in 2012 and 2013 to income tax.
The Revenue has been operating a project dedicated to raising additional tax from Kerry Co-op shareholders.
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Kerry Co-op suppliers who received patronage shares in 2012 and 2013 received a second round of tax assessments in the lead-up to Christmas.
Farmers told the Irish Farmers Journal that the same shareholders targeted last year – those supplying more than 100,000 gallons per year – had again received formal assessments.
However, the Irish Farmers Journal understands that updates to the Revenue’s online information system about the taxation of patronage shares constitute an official notification and shareholders of any size who received patronage shares are liable to declare their value as taxable income.
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Documents obtained by the Irish Farmers Journal under a freedom of information request into the Revenue’s “Kerry project” showed that tax officials assumed the shares distributed under the co-op’s patronage scheme in 2012 and 2013 were worth €34m and submitting them to income tax could raise €17m plus interest and penalties.
The issue emerged last year when the Revenue raised tax assessments claiming thousands of euros each from 400 farmers. They had received free shares to reward their loyalty as suppliers and the Revenue changed its interpretation of the scheme, arguing the shares’ value constituted taxable income.
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Title: Fresh €17m tax bills hit Kerry Co-op members
As previously revealed by the Irish Farmers Journal, Revenue is now attempting to submit patronage shares received by Kerry farmers in 2012 and 2013 to income tax.
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Kerry Co-op suppliers who received patronage shares in 2012 and 2013 received a second round of tax assessments in the lead-up to Christmas.
Farmers told the Irish Farmers Journal that the same shareholders targeted last year – those supplying more than 100,000 gallons per year – had again received formal assessments.
However, the Irish Farmers Journal understands that updates to the Revenue’s online information system about the taxation of patronage shares constitute an official notification and shareholders of any size who received patronage shares are liable to declare their value as taxable income.
Documents obtained by the Irish Farmers Journal under a freedom of information request into the Revenue’s “Kerry project” showed that tax officials assumed the shares distributed under the co-op’s patronage scheme in 2012 and 2013 were worth €34m and submitting them to income tax could raise €17m plus interest and penalties.
The issue emerged last year when the Revenue raised tax assessments claiming thousands of euros each from 400 farmers. They had received free shares to reward their loyalty as suppliers and the Revenue changed its interpretation of the scheme, arguing the shares’ value constituted taxable income.
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