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Dáil
‹ Order of Business

Kerry Group share tax demands

Summary

Deputies John Brassil, Michael Moynihan and Michael Healy-Rae raised Revenue tax demands on farmers over Kerry Group patronage shares and warned many could not pay. The Taoiseach said the Revenue Commissioners were independent, but he would bring the issue to the Minister for Finance and noted broader budget supports for farmers.

Under the programme for Government and our commitment to support and strengthen our badly ailing agriculture industry, I ask the Taoiseach to call on the Minister for Finance to immediately request the Chairman of the Revenue Commissioners to come before the Oireachtas finance committee and explain the out of the blue recent tax demand on farmers in Kerry for Kerry Group patronage shares. This very questionable tax demand will put many farmers out of business.

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This issue has erupted regarding Kerry Group shares. It is widely known in the agriculture industry how farmers dealt with Kerry Group. Recently, 400 farmers have been given notice from the Revenue Commissioners of tax demands going back three, four or five years. These tax demands are imposed on farmers who have had a desperately difficult year. It is widely known they will not be able to meet their commitments. The Revenue Commissioners have come down with a very heavy hand on the agricultural industry, and the Minister and the Government should take a proactive approach to it because it is absolutely unacceptable that Revenue is going after farmers in a way that makes no sense whatsoever.

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I appreciate the importance of the issue being raised, but there is neither promised legislation nor programme for Government-----

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Sorry Ceann Comhairle but there is because I studied it earlier. This is going completely against the programme for Government with regard to supporting agriculture. A total of 400 farmers received a letter, what is called an aspect query. I do not know whether the Taoiseach has ever received one of these, but I know what they are. They received an aspect query from the Revenue Commissioners with respect to Kerry Group shares received under the patronage arrangement. In case the Taoiseach does not know what this is, a milk supplier receives a patronage share for milk supplied. These farmers were of the belief this was not additional trading income to their families so it was not accounted for. Now they are being told they must pay tax on it at a time when our dairy sector and our agricultural sector in general is on its knees. Only yesterday 400 of these farmers received this letter at a critical time.

I am very sorry our legendary Minister for Finance, for whom I have great respect as the Taoiseach knows, is not in the Chamber because I would like him to answer this question. I would like him to come back to us and tell us what in the name of God the Revenue Commissioners are doing writing to 400 farmers out of the blue. It is ridiculous and it is wrong. I ask the Taoiseach to please look into it.

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Enda Kenny The Taoiseach Fine Gael

The Minister is currently preparing for Report Stage of the Finance Bill. I point out to the Deputies that while the query is valid, the Minister for Agriculture, Food and the Marine does not control, and nor does the Minister for Finance control, the Revenue Commissioners who are completely independent.

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Somebody needs to.

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Somebody would want to control them.

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Enda Kenny The Taoiseach Fine Gael

As the Deputies are aware, the Minister for Agriculture, Food and the Marine is acutely aware of the difficulties being experienced by farmers, as is the Minister for Finance. This is why, for instance, in the budget there were a number of measures for farmers, including and because of this year in particular for grain farmers, a gap year built into the system to allow for some relief for people who have not been able to get any grain out at all because of the inclement weather and the condition of the fields.

I am quite sure the committee is in correspondence with the Revenue Commissioners.

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They need support.

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Enda Kenny The Taoiseach Fine Gael

I will bring the matter to the attention of the Minister for Finance, but he does not direct the Revenue Commissioners to do or not to do something.

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