asked the Minister for Finance if he is aware that many farmers are being requested to make tax returns even though they have no taxable income; that farmers under £40 valuation are receiving tax demands; and if he proposes to take any action on the matter.

A farmer in occupation of land the rateable valuation of which is £40 or more (or a farmer with a smaller valuation, in cases in which he or his wife has other sources of income) is required to furnish a return of income so that the extent of the income tax liability (if any) may be established. In the absence of returns an inspector of taxes would not be in a position to decide whether or not there is taxable income from farming or from other sources.

Any farmer who receives a tax assessment may, if he disagrees with the amount of the assessment, lodge an appeal against it. Normally it will be possible for the farmer to reach agreement on his liability (if any) with the inspector but, where this is not possible, the inspector will arrange to have the appeal listed for hearing by the appeal commissioners.

Any change in the system would be a budgetary matter.