Taxation of jointly owned farms
The Minister said the Supreme Court had ruled income aggregation for married couples unconstitutional but had reserved judgment on when the ruling would take effect. He could not say when judgment was due; the tax treatment of spouses’ separate or jointly owned farms and how profits would be assessed remained to be determined.
andMr. Creed asked the Minister for Finance if the recent Supreme Court decision in relation to taxation will apply to farmers' wives, where the farm is held in joint ownership.
Comment on this
The Supreme Court in a decision given on 25 January 1980, ruled that sections 192 to 198, inclusive of the Income Tax Act, 1967, in so far as they provide for the aggregation of the earned incomes of married couples, are repugnant to the Constitution. On 31 January 1980 counsel on behalf of the Attorney General applied to the Supreme Court for a ruling as to the date as from which their decision was to apply. Submissions in this regard were made to the court at hearings held on 12 to 14 February 1980, and the court has reserved judgment. It would, therefore, be inappropriate to make any statement in the matter until the court has given its ruling.
Comment on this
Supposing a husband and wife each own a farm in separate names, what is the position in regard to the tax? Say the combined total valuation is £45, what is the position in relation to tax?
Comment on this
Under the provisions I announced yesterday it would mean they would have to submit accounts. If they had two separate holdings it would be a different matter. The matter of aggregation of occupation and ownership has to be decided.
Comment on this
(Cavan-Monaghan): Is it not clear that if a husband and wife are registered as owners of a farm each of them is entitled to have the profits and each will only be assessed for half the profits, under the Minister's new scheme and according to the decision of the Supreme Court?
Comment on this
It may seem clear to the Deputy, but it still has to be determined by the Supreme Court.