The Irish Farmers' Association - IFA

Lobbying Organisation The Irish Farmers' Association - IFA

Date published 20 Sep, 2018

Relevant Matter Matters involving public funds

Public Policy Area Finance

Period 1 May, 2018 to 31 Aug, 2018

Specific Details Budget 2019 IFA Submission - Taxation

Intended results Extension of Income Averaging to self-employed farmers with other income - IFA proposes that, where a farmer or their spouse has an additional self-employed source of income, income averaging should be allowed on farm profits. Increasing Flexibility in Income Averaging ‘Step-Out' - IFA proposes 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'. For example, if the farmer ‘steps out' from income averaging in Year 1 and repays the deferred amount in Years 2 and 3, he should be eligible to ‘step-out' again in Years 4 or 5 of a cycle. Deposit scheme - IFA supports the introduction of an adapted ICOS proposal based on the 5-5-5 model, which allows all farmers to put aside 5% of their gross receipts, whether in their co-op or specially assigned bank account. This money is then available for drawn down within the next 5 years, and the tax due would be paid on the year of withdrawal. Earned Income Tax Credit - 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 must be implemented in full. The Earned Income Tax Credit must be increased from its 2018 level of €1,150 to €1,650 in October's budget, to be in place from 1st January 2019. Stamp Duty relief for Young Farmers - IFA proposes there should be an extension of this relief, to encourage the timely transfer of family farms. Rates of Stamp Duty on Commercial Property - IFA proposes that agriculture is removed from the commercial definition and revised in line with the residential stamp duty charge of 1%, up to €1m and 2% thereafter. Succession Farm Partnerships, 80% asset transfer - IFA is proposing that this should be reduced to 65% to reach the correct balance between encouraging the timely transfer of farms to the next generation and providing income security to the transferring generation. Agricultural/Business Relief and Capital Acquisitions Tax (CAT) Values - IFA proposes that the retention of 90% Agricultural Relief is critical to support the transfer of economically viable family farms. To ensure that farms of a viable size can continue to be transferred, IFA supports the commitment in the Programme for Government to increase the Category A threshold (parent and child) from the current rate of €310,000 to €500,000 in future budgets. Vaccines and Herd Health products - With reference to VAT on non-oral animal medicines, the IFA is seeking the application of the 5% rate currently allowable under Council Directive 2006/112/EC. IFA is seeking a commitment from the Government, that the 0% VAT rate will be applied as soon as is possible on adoption of the EU Council Directive. CGT Entrepreneur Relief - IFA proposes that the lifetime limit of €1m on the CGT Entrepreneur relief should be increased in Budget 2019. The enhancement of CGT Entrepreneur Relief is an important measure to encourage risk taking and investment, and the subsequent disposal of business assets during an individual's lifetime Interaction of CGT Entrepreneur Relief and CGT Retirement Relief - The IFA proposes that the interaction between the two CGT reliefs should be removed, and that the two reliefs should be standalone. An individual should be able to avail, in full, of the CGT Entrepreneur Relief and the CGT Retirement Relief over the course of their lifetime, subject to satisfying the qualifying conditions of each relief. Focus Agricultural Relief for Capital Acquisitions Tax for the genuine farmer - IFA proposes that to avail of the Agricultural Relief the transferor or transferee, or a combination of both, has to farm or have farmed the land for a minimum of 10 years, similar to the qualifying business asset definition in the existing CGT relief. Furthermore, that the retention period of the individual receiving the gift / inheritance should be increased from 6 to 15 years. Contract rearing / VAT - IFA proposes a review of VAT rates on contract rearing. VAT on farm buildings - IFA proposes that a flat-rate farmer should not have to pass on the charge of VAT, as it could have a negative impact on farm consolidation and expansion. Excise Duty on Fuel - The IFA proposes the current rates on fuel and diesel remain unchanged. Farm Safety incentive and employee flat-rate expenses - To minimise the risk on farms, IFA proposes VAT should be removed on farm safety equipment, to support farmers to purchase / maintain equipment to the best safety standards. IFA proposes that to encourage safe working farm environments, the flat-rate expense allowance list should also include agricultural workers, where the employee supplies their own equipment in-line with similar employees in the sector estimated at a rate of €651.70 Retention of Irish Agricultural Relief for UK land - IFA proposes there should be a retention of Irish agricultural relief for all farmers who have holdings that are in both Ireland and UK. Collaborative farming partnership fund - The fund for this is diminishing and IFA proposes that this grant is essential and should be extended. Stock Relief - To support the industry in achieving increased output targets over the coming decade, IFA proposes that stock relief should be extended to include all registered farm partnerships and both the 25% general Stock Relief and 100% Stock Relief for Young Trained Farmers are extended past the current proposed expiry date of 31st December 2018. Supporting employment and training in SMEs - Apprenticeship supports - 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 e.g. similar to the Apprenticeship Job Creation Tax Credit scheme currently operating in Canada or Jobs Plus employment incentive scheme. Incentives to Support the Domestic Artisan Cider Industry - IFA proposes that Government support should be provided to encourage the growth of the small-scale domestic artisan cider industries 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 Licence for annual production quantities up to 1,000 hectolitres. Such a licence would permit both retail and wholesale sale

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

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? To lobby Oireactas members on IFA's 2019 pre-budget submission items

Was this lobbying done on behalf of a client? No

Mass communications

Letter All Oireachtas Members

Submission All Oireachtas Members

Letter All MEPs

Submission All MEPs

Lobbying activity

The following activities occurred for this specific Subject Matter Area.

Letter (11-20)

Meeting (1)

Email (6-10)

Social Media (6-10)

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.

Edward Brophy Special Advisor (Department of Finance)

Philip O'Callaghan Special Adviser (Department of the Taoiseach)

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

Aidan O'Driscoll Secretary General (Department of Agriculture, Food and the Marine)

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

Mary Mitchell O'Connor Minister of State (Department of Education and Skills)

Richard Bruton Minister (Department of Education and Skills)

Michael D'Arcy Minister of State (Department of Finance)

Michael Ring Minister (Department of Rural and Community Development)

Andrew Doyle Minister of State (Department of Agriculture, Food and the Marine)

Regina Doherty Minister (Department of Social Protection)

Bernard Durkan TD (Dáil Éireann, the Oireachtas)

Paschal Donohoe Minister (Department of Finance)

Marian Harkin MEP (European Parliament)

Brendan Howlin TD (Dáil Éireann, the Oireachtas)

Katherine Zappone Minister (Department of Children and Youth Affairs)

Denis Naughten Minister (Department of Environment, Climate and Communications)

Enda Kenny TD (Dáil Éireann, the Oireachtas)

Ciarán Cannon Minister of State for the Diaspora and Overseas Development Aid (Department of Foreign Affairs)

Liadh Ní Riada MEP (European Parliament)

Mattie McGrath TD (Dáil Éireann, the Oireachtas)

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