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Several TDs brought up the tax bills received by Kerry co-op shareholders in the Dáil this week, with many politicians in Kerry’s catchment area asking the Government to step in.
Independent Kerry TD Michael Healy-Rae called for Minister for Finance Michael Noonan to intervene, adding: “It is ridiculous and it is wrong. I ask the Taoiseach to please look into it.”
An Taoiseach Enda Kenny accepted that the question was valid.
However, he said: “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.”
“I say it’s about time someone does,” Healy-Rae told the Irish Farmers Journal after the exchange. “What they’re doing is a thundering disgrace,” he added. Healy-Rae’s advice to the farmers involved is that they should agree as a group not to pay the unexpected tax bills.
Minister of State for Financial Services Eoghan Murphy fully backed the Revenue’s position in the Dáil on Wednesday.
He argued that as the number of patronage shares received were linked to the volume of business between a farmer and the co-op, “the shares were therefore payment received for the milk supplied” and constitute taxable income. “There has been no change in tax policy,” he added. He also pointed out that “it is not required to make payment within 21 days – it is required to engage with the Revenue”.
Fine Gael Limerick county TD Tom Neville told the Irish Farmers Journal that constituents who had contacted him were “shocked and dismayed at the letter they’ve received, after the year they’ve had with the price of milk”.
Fianna Fáil TD for Limerick County Niall Collins pointed out that farmers have paid capital gain tax after selling patronage shares in the past and the Revenue never questioned this.
The office of Minister Noonan, whose Limerick city constituency overlaps with the Kerry milk pool, did not reply to requests for comment from the Irish Farmers Journal.
Listen to Kerry farmers' reactions in our podcast below:
Listen to "Farmers in shock at back tax demands on Kerry co-op shares" on Spreaker.
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