The Irish Farmers' Association - IFA

Lobbying Organisation The Irish Farmers' Association - IFA

Date published 20 Jan, 2020

Relevant Matter Matters involving public funds

Public Policy Area Agriculture

Period 1 Sep, 2019 to 31 Dec, 2019

Specific Details IFA Budget 2020 Submission - Taxation

Intended results Income Averaging "Step-Out" flexibility: that a farmer should be allowed to ‘step-out’ of income averaging more than once in a five-year period, where they are not carrying an unpaid deferred tax amount from a previous ‘step-out’, providing a strong incentive to repay the deferred tax also. Precautionary savings for volatility: to support the introduction of an adapted ICOS precautionary savings proposal, 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 draw down within the next 5 years, and the tax due would be paid on the year of withdrawal. Earned Income Tax Credit: that 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 in Budget 2020. The gap of €300 from the current level of €1,350, must increase to €1,650. USC for the self-employed: the discrimination of the application of the USC between PAYE and self-employed earners must be removed, aligning the self-employed with PAYE workers. Stamp duty - agriculture is removed from the commercial definition: that it is revised in line with the residential stamp duty charge of 1%, up to €1m, and 2% thereafter. Stamp duty - lowering rate: that further consideration must be given to lowering the rate of Stamp Duty, considering the introduction of the €70,000 limit for Young Trained Farmers in the Finance Bill in October 2018. Stamp duty - reviews: that reviews to Stamp Duty, and in particular consanguinity relief, are announced before Budget day in October. Adequate timing should be provided for in the year it is due for renewal, to support smooth Agricultural/Business Relief and Capital Acquisitions Tax (CAT) values: to support the commitment in the Programme for Government to increase the Category A threshold (parent and child) from the current rate of €320,000 to €500,000 in future budgets. Collaborative farming partnership fund: this essential grant, which is diminishing, be extended. Vaccines and herd health products - the 5% VAT rate on non-oral animal medicines: currently allowable under Council Directive 2006/112/EC be applied immediately. Vaccines and herd health products - 0% rate: that the Government commits to the 0% VAT rate as soon as is possible, on adoption of the EU Council Directive. CGT Entrepreneur Relief - 10% relief applies for long-term tenant: that should a landowner wish to sell land to a long-term tenant, then the CGT Entrepreneur relief of 10% will apply to incentivise supporting the genuine farmer and giving the long-term tenant preferred status. CGT Entrepreneur Relief - lifetime limit of €1m: should be increased in Budget 2020. 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. CGT Entrepreneur Relief - agricultural land subject to CPO: should not be categorised as ‘development’ land and will still qualify for CGT Entrepreneur relief. Interaction of CGT Entrepreneur Relief and CGT Retirement Relief: that the interaction between the two 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. Agricultural Relief for the genuine farmer: that to avail of the Agricultural Relief the transferor or transferee, or a combination of both, have 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. Green tax credit: pending the introduction of a feed-in-tariff and grid access, that for each unit of surplus energy produced through on-farm green energy, an equivalent income tax credit be granted to the energy provider. Tax treatment of payments received for use of forestry land by a third party: that payment for the loss of this income i.e. forestry premium, should not be subject to Income Tax or Capital Gains Tax. VAT on farm buildings: 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. Accelerated capital allowances for emission efficient farm equipment: by contributing to increased emission efficiency e.g. LESS or capital investment in developing bioeconomy supply chains, should qualify for accelerated capital allowances. To be provided through enhanced SEAI Accelerated Capital Allowance Scheme, or parallel scheme, operating under same structures – i.e. 100% capital allowances for investment in equipment that is independently certified & listed by qualifying authority. Farm Safety incentive & employee flat-rate expenses - non-registered farmers may reclaim VAT: on costs for purchasing and maintaining farm safety equipment to help maintain best safety standards, via the VAT 58 form. Farm Safety incentive & employee flat-rate expenses - inclusion of agricultural workers: as part of the current review of the flat-rate expenses, in line with similar employees in the sector, a rate of €651.702 is estimated. Excise duty on fuel: that the current rates on fuel and diesel remain unchanged.

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

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? No

Was this lobbying done on behalf of a client? No

Mass communications

Email All Senators

Submission All Senators

Email All TDs

Submission All TDs

Lobbying activity

The following activities occurred for this specific Subject Matter Area.

Lobby day (1)

Meeting (1)

Email (11-20)

Informal communication (11-20)

Social Media (11-20)

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.

Paschal Donohoe Minister (Department of Finance)

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

Pat Deering TD (Dáil Éireann, the Oireachtas)

Charlie McConalogue TD (Dáil Éireann, the Lower House of the Oireachtas)

Simon Harris Minister (Department of Health)

Pat Breen Minister of State (Department of Employment Affairs and Social Protection)

Regina Doherty Minister (Department of Employment Affairs and Social Protection)

John Halligan Minister of State (Department of Business, Enterprise and Innovation)

John Paul Phelan Minister of State (Department of Housing, Planning and Local Government)

Michelle Mulherin Senator (Seanad)

Paul Kehoe Minister of State (Department of Defence)

Finian McGrath Minister of State (Department of Health)

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

Peter Burke TD (Dáil Éireann, the Oireachtas)

Mattie McGrath TD (Dáil Éireann, the Oireachtas)

Pippa Hackett Councillor (Offaly County Council)

Margaret Murphy O'Mahony TD (Dáil Éireann, the Oireachtas)

Victor Boyhan Senator (Seanad)

Tom Neville TD (Dáil Éireann, the Oireachtas)

Bobby Aylward TD (Dáil Éireann, the Oireachtas)

Terry Leyden Senator (Seanad)

Michelle Mulherin Senator (Seanad)

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

Jerry Buttimer Senator (Seanad)

Bernard Durkan TD (Dáil Éireann, the Oireachtas)

John Brassil TD (Dáil Éireann, the Oireachtas)

Declan Breathnach TD (Dáil Éireann, the Oireachtas)

James Browne TD (Dáil Éireann, the Oireachtas)

Jackie Cahill TD (Dáil Éireann, the Oireachtas)

Dara Calleary TD (Dáil Éireann, the Oireachtas)

Joe Carey TD (Dáil Éireann, the Oireachtas)

Pat Casey TD (Dáil Éireann, the Oireachtas)

Niall Collins TD (Dáil Éireann, the Oireachtas)

Marcella Corcoran Kennedy TD (Dáil Éireann, the Oireachtas)

Jim Daly Minister of State (Department of Health)

Timmy Dooley TD (Dáil Éireann, the Oireachtas)

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

Martin Ferris TD (Dáil Éireann, the Oireachtas)

Pat 'the cope' Gallagher TD (Dáil Éireann, the Oireachtas)

Noel Grealish TD (Dáil Éireann, the Oireachtas)

Brendan Griffin Minister of State (Department of Transport, Tourism and Sport)

Danny Healy-Rae TD (Dáil Éireann, the Oireachtas)

Michael Healy-Rae TD (Dáil Éireann, the Oireachtas)

Martin Heydon TD (Dáil Éireann, the Oireachtas)

Martin Kenny TD (Dáil Éireann, the Oireachtas)

Sean Kyne Government Chief Whip and Minister (Department of the Taoiseach)

Marc MacSharry TD (Dáil Éireann, the Oireachtas)

Charlie McConalogue TD (Dáil Éireann, the Oireachtas)

Mary Lou McDonald TD (Dáil Éireann, the Oireachtas)

Helen McEntee Minister of State (Department of Foreign Affairs)

Michael McGrath TD (Dáil Éireann, the Oireachtas)

John McGuinness TD (Dáil Éireann, the Oireachtas)

Tony McLoughlin TD (Dáil Éireann, the Oireachtas)

Aindrias Moynihan TD (Dáil Éireann, the Oireachtas)

Michael Moynihan TD (Dáil Éireann, the Oireachtas)

Eugene Murphy TD (Dáil Éireann, the Oireachtas)

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

Hildegarde Naughton TD (Dáil Éireann, the Oireachtas)

Carol Nolan TD (Dáil Éireann, the Oireachtas)

Éamon Ó Cuív TD (Dáil Éireann, the Oireachtas)

Fergus O'Dowd TD (Dáil Éireann, the Oireachtas)

Kevin O'Keeffe TD (Dáil Éireann, the Oireachtas)

Fiona O'Loughlin TD (Dáil Éireann, the Oireachtas)

Eamon Scanlon TD (Dáil Éireann, the Oireachtas)

Seán Sherlock TD (Dáil Éireann, the Oireachtas)

Brendan Smith TD (Dáil Éireann, the Oireachtas)

Brian Stanley TD (Dáil Éireann, the Oireachtas)

Robert Troy TD (Dáil Éireann, the Oireachtas)

Maria Byrne Senator (Seanad)

Paudie Coffey Senator (Seanad)

Martin Conway Senator (Seanad)

Rose Conway-Walsh Senator (Seanad)

Paul Daly Senator (Seanad)

Frank Feighan Senator (Seanad)

Robbie Gallagher Senator (Seanad)

Maura Hopkins Senator (Seanad)

Anthony Lawlor Senator (Seanad)

Tim Lombard Senator (Seanad)

Pádraig Mac Lochlainn Senator (Seanad)

Ian Marshall Senator (Seanad)

Kieran O'Donnell Senator (Seanad)