The Irish Farmers' Association - IFA

Lobbying Organisation The Irish Farmers' Association - IFA

Date published 20 Sep, 2017

Relevant Matter Matters involving public funds

Public Policy Area Finance

Period 1 May, 2017 to 31 Aug, 2017

Specific Details IFA 2018 Budget Submission - Taxation Measures to Support Growth and Restructuring

Intended results Income Volatility Income Volatility - Extending Income Averaging to Farmer/Spouse with Additional Self-Employment - that qualification for income averaging on farming profits should be extended where the spouse and/or farmer has a fully separable source of self-employed income. Increasing Flexibility in Income Averaging ‘Step-Out’ - that a farmer should be allowed to ‘step-out’ of income averaging more than once in a five year period, where he is not carrying an unpaid deferred tax amount from a previous ‘step-out’ Deposit Scheme - the introduction of an individualised deposit scheme for farmers for the management of income volatility. Income would be put on deposit and brought back into the farm enterprise within the next five years. The tax due on that income would be calculated and payable in the year of drawing it down. Removing Discrimination in the Income Tax System Earned Income Tax Credit - IFA recognises the commitment in the Programme for Government to increase the Earned Income Tax Credit to €1,650 for the self-employed, to match the PAYE credit, by 2018. The Earned Income Tax Credit must be increased from its 2017 level of €950, to €1,650 in October’s budget, to be in place from 1 January 2018. Farm Transfer and Succession Stamp Duty Consanguinity Relief - IFA proposes that, to encourage the early lifetime transfer of family farms, Stamp Duty Consanguinity Relief for non-residential property should be retained after the 31st December 2017, where the transferor has not reached the age of 67. In addition, IFA believes that consanguinity relief should be extended to include all farm transfers that are undertaken within the structure of a Registered Farm Partnership. Agricultural/Business Relief and CAT Values - IFA believes that the retention of 90% Agricultural is critical to support the transfer of economically viable family farms. To ensure that farms of a viable size can continue be transferred, IFA supports the commitment in the Programme for Government to increase the Category A threshold (parent and child) in future budgets. Farm Investment and Improvement Measures VAT Rates on Animal Vaccines - IFA proposes that to encourage increased use of vaccination as a means to improve herd health and to proactively assist with AMR, the VAT rate on non-oral animal medicines should be reduced to 0%. CGT Entrepreneur’s Relief - IFA proposes that the lifetime limit of €1m on the CGT Entrepreneur’s relief should be increased in Budget 2018. The enhancement of CGT Entrepreneurs Relief is an important measure to encourage risk taking and investment, and the subsequent disposal of business assets during an individual’s lifetime Renewable Energy and Climate Efficiency Proposals Capital Tax Treatment of Land Under Solar Panel Infrastructure - IFA proposes that farmland that is under solar panel infrastructure must be considered as part of the overall trading enterprise, and a qualifying asset eligible for relief for the purpose of assessment under Capital Acquisitions Tax when transferred to the next generation. Accelerated Capital Allowances for Emission Efficient Equipment - IFA proposes that farm equipment, which contributes to increased emission efficiency, should qualify for accelerated capital allowances. This would be provided through an enhanced SEAI Accelerated Capital Allowances Scheme, or through a parallel scheme, which would operate under the same structures – i.e. 100% capital allowances for investment in equipment that is independently certified and listed by a qualifying authority. Treatment of Income Invested in Community-Based Renewable Energy Projects - IFA proposes that incentives through the taxation system should be provided to encourage investment by farmers and other individuals in community based renewable energy projects. This could include: Income tax relief on investment in renewable energy projects, through qualification for the Employment and Investment Incentive Scheme (EIIS) and favourable Income/Capital Gains Tax treatment on any growth achieved on the initial investment amount. • Where the individual becomes a shareholder in a renewable energy project, income tax relief, up to a designated limit should be provided on the income/profit received from these enterprises. Supporting Employment in Rural Ireland Incentivising Apprenticeships in Rural SMEs - IFA proposes that incentives through the tax or Social Protection system should be provided for small business employers who take on apprentices in an approved programme. This could be structured in the following way: An income tax credit, similar to the Apprenticeship Job Creation Tax Credit2 scheme currently operating in Canada, which provides a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment; or • The Jobs Plus employment incentive scheme, which provides a cash payment to employers who take on workers who have been out of work for a long period of time. Incentives to Support the Domestic Artisan Cider Industry - IFA believes that Government support should be provided to encourage the growth of the small-scale domestic artisan cider industries. Measures that should be considered include: • Removal of the upper excise band for cider, resulting in a single rate of duty of €94.46/hectolitre; and • Establishment of an Artisan Cider Manufacturers License for annual production quantities up to 1,000 hL. Such a license would permit both retail and wholesale sales.

Name of person primarily responsible for lobbying on this activity IFA President Joe Healy and IFA Farm Business Chairman Martin Stapleton

Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?) No

Did you manage or direct a grassroots campaign? Yes

What is the directive you gave to the grassroots campaigners? Lobbying Oireachtas Members to deliver IFA Budget 2018 proposals

Was this lobbying done on behalf of a client? No

Mass communications

Letter All Oireachtas Members

Submission All Oireachtas Members

Lobbying activity

The following activities occurred for this specific Subject Matter Area.

Email (6-10)

Meeting (2-5)

Event / Reception (1)

Designated public officials lobbied

The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them. As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.

Michael Creed Minister (Department of Agriculture, Food and the Marine)

Jonathan Hoare Special Adviser (Department of Agriculture, Food and the Marine)

Paschal Donohoe Minister (Department of Transport, Tourism and Sport)

Stephen Lynam Special Adviser (Department of Finance)

Pat Deering TD (Dáil Éireann, the Oireachtas)

Charlie McConalogue TD (Dáil Éireann, the Oireachtas)

Jackie Cahill TD (Dáil Éireann, the Oireachtas)

Willie Penrose TD (Dáil Éireann, the Oireachtas)

Thomas Pringle TD (Dáil Éireann, the Oireachtas)

Tim Lombard Senator (Seanad)

Michelle Mulherin Senator (Seanad)

Paul Daly Senator (Seanad)

Martin Kenny TD (Dáil Éireann, the Oireachtas)

Peter Burke TD (Dáil Éireann, the Oireachtas)

Pearse Doherty TD (Dáil Éireann, the Oireachtas)

Michael McGrath TD (Dáil Éireann, the Oireachtas)

Paul Murphy TD (Dáil Éireann, the Oireachtas)

Seán Sherlock TD (Dáil Éireann, the Oireachtas)

Paddy Burke Senator (Seanad)

Rose Conway-Walsh Senator (Seanad)

Gerry Horkan Senator (Seanad)

Kieran O'Donnell Senator (Seanad)

John McGuinness TD (Dáil Éireann, the Oireachtas)

Mattie McGrath TD (Dáil Éireann, the Oireachtas)

Damien English Minister of State (Department of Housing, Planning and Local Government)

Richard Bruton Minister (Department of Education and Skills)

Paul Kehoe Minister (Department of Defence)

Frances Fitzgerald Tánaiste and Minister (Department of Business, Enterprise and Innovation)

Eoghan Murphy Minister (Department of Housing, Planning, Community and Local Government)

Patrick O’Donovan Minister of State (Department of Public Expenditure and Reform)

John Hogan Assistant Secretary (Department of Finance)