The Irish Farmers' Association - IFA

Lobbying Organisation The Irish Farmers' Association - IFA

Date published 20 Jan, 2017

Relevant Matter Legislation

Public Policy Area Finance

Period 1 Sep, 2016 to 31 Dec, 2016

Specific Details Agri Taxation - IFA 2017 Budget Submission

Intended results To tackle income volatility: - Extension of income averaging where farmer’s spouse is self-employed - where a spouse of a farmer has a fully separable source of income from self-employment, income averaging should be allowed on the farm profits. - Individualising income averaging through temporary opt-out - that a farmer on income averaging is permitted, in a year when farm income falls significantly, to pay the tax due for a single year only on the actual income earned in that year, rather than the average tax due arising from the previous five years’ income. The underpayment of tax in that year would be carried forward and paid over a three year period. Over a five year period, the farmer would have the option of using his actual income as the basis for his tax payment on two occasions. While the scheduling/timing of the tax payment would differ, the total amount paid to the Revenue Commissioners would remain the same. The farmer would pay higher tax in the years following the opt-out, than if he had not opted out, but this should be at a time of higher income, and therefore greater ability to meet this tax payment Removing discrimination in the income tax system - Earned Income Tax Credit - with reference to the commitment in the Programme for Government to increase the Earned Income Tax Credit from €550 to €1,650 for the self-employed, to match the PAYE credit, by 2018. Given the positive exchequer returns in 2016, there is scope to introduce this for 2017 in October’s budget. Farm Transfer and Restructuring - Agricultural Relief and CAT Values - that the retention of 90% Agricultural and Business Relief is critical to support the transfer of family farms and other small businesses. In addition, 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. CGT Restructuring Relief - that the CGT Restructuring Relief measure should be extended past the current expiry date of end 2016. While recognising that it is a measure that applies to a small number of farmers, its retention is important. Where the opportunity arises to restructure a farm through land disposal and re-purchase, it is of huge benefit to that individual, and can significantly improve both the financial and environmental efficiency of that holding. Stamp Duty Consanguinity Relief for Registered Farm Partnerships - that stamp duty consanguinity relief (1% stamp duty) is extended to farm transfers that are undertaken within the structure of a Registered Farm Partnership. Land Leasing tax exemption between siblings - that the land leasing tax exemption scheme should be extended to leases between siblings, but with restrictions in place to ensure that it continues to be used in genuine circumstances only. In particular, IFA proposes that where the lease is between siblings, only one sibling can avail of the income tax exemption – i.e. there can be no situation whereby two farmer siblings lease land to each other and avail of the income tax exemption. CGT Relief on Farm Partnership dissolution - that, in order to continue to encourage farmers to enter into farm partnerships, the Joint Tenancy Ownership Relief from Capital Gain Tax that was available until December 2013, where there was the dissolution of a farm partnership, should be reinstated. Aquaculture – implementing the proposals of the marine taxation review -that the extension of Agricultural Relief to the marine sector, including aquaculture, must be implemented in Budget 2017. Farm Investment - Accelerated Capital Allowance for investment in energy efficient equipment - that the extension of the SEAI accelerated capital allowances scheme for investment in energy efficient equipment to sole traders, as proposed in the Agri-taxation review 2014 and Marine Taxation Review 2016, would be a progressive move to encourage on-farm investments and improve the overall efficiency of farming enterprises. Incentivising farm level renewable energy initiatives: For farmland used for solar power generation, - that land leased on a long-term basis to a solar panel enterprise, where the land is also used in the trade of farming, must qualify for the income tax exemption for long term leasing of farmland - Where the lease concludes and reverts to the original farmer, CGT Retirement Relief and Agricultural Relief must apply on transfer of the land, subject to the other qualifying conditions being satisfied - • Where the farmer installs the solar panels on his land and continues to farm the land around the panels (does not lease the land out), this land will qualify for CGT Retirement Relief and Agricultural Relief upon transfer To further encourage farm-based renewable energy initiatives IFA proposes: A generation feed-in tariff must be introduced for farm-scale renewable energy production, in particular solar, wind and Anaerobic Digestion - Investment in farm-scale renewable energy initiatives must qualify under the EIIS scheme; - Income received for the alternative use of farmland for renewable energy projects should receive an income tax exemption, if such income is used for the purposes of re-investment in the farm business; and - Revenue from the Carbon tax should be ring-fenced for re-investment in and support of renewable energy initiatives. Changes to excise and licensing regime for small scale cider production: - that the upper excise band for cider should be removed. The result would be a single rate of duty of €94.46/hectolitre, for all ciders of volume from 2.8%-8.5%; - an Artisan Cider Manufacturers License should be established for annual production quantities up to 1,000 hL. Such a license would permit both retail and wholesale sales. Apprenticeship tax credit - that incentives through the tax system are provided for small business employers who take on apprentices in an approved programme. This would be in the form of an income tax credit similar to the Apprenticeship Job Creation Tax Credit scheme currently operating in Canada. Rejuvenating rural towns and villages: Support for the proposal in the Programme for Government to introduce a new and improved Town and Villages Renewal Scheme in this year’s budget. New business start-ups should receive an exemption from rates for an initial time period and with a continuation of the three year tax exemption for start -up companies • Where businesses establish in rural villages and town centres, they should be eligible to claim double income tax relief on their rental expenditure for their premises.

Name of person primarily responsible for lobbying on this activity Joe Healy IFA President, Martin Stapleton IFA Farm Business Chairman and Bryan Barry Acting General Secretary

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 all Oireachtas Members on the Agri-Taxation proposals in IFA's 2017 Budget Submission

Was this lobbying done on behalf of a client? No

Mass communications

Letter All Oireachtas Members Letter on Agri-taxation proposals to Oireachtas Members

Lobbying activity

The following activities occurred for this specific Subject Matter Area.

Email (21-30)

Submission (1)

Social Media (11-20)

Meeting (21-30)

Phone call (31-50)

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.

Gerry Adams TD (Dáil Éireann, the Oireachtas)

Bobby Aylward TD (Dáil Éireann, the Oireachtas)

John Brassil TD (Dáil Éireann, the Oireachtas)

Pat Breen Minister of State (Department of Jobs, Enterprise and Innovation)

Peter Burke TD (Dáil Éireann, the Oireachtas)

Jackie Cahill TD (Dáil Éireann, the Oireachtas)

Sean Canney Minister of State (Department of Public Expenditure and Reform)

Shane Cassells TD (Dáil Éireann, the Oireachtas)

Barry Cowen TD (Dáil Éireann, the Oireachtas)

Declan Breathnach TD (Dáil Éireann, the Oireachtas)

James Browne TD (Dáil Éireann, the Oireachtas)

Mary Butler TD (Dáil Éireann, the Oireachtas)

Dara Calleary TD (Dáil Éireann, the Oireachtas)

Pat Casey TD (Dáil Éireann, the Oireachtas)

Michael Collins TD (Dáil Éireann, the Oireachtas)

David Cullinane TD (Dáil Éireann, the Oireachtas)

Michael W. D'Arcy TD (Dáil Éireann, the Oireachtas)

Pearse Doherty TD (Dáil Éireann, the Oireachtas)

Timmy Dooley TD (Dáil Éireann, the Oireachtas)

Peter Fitzpatrick TD (Dáil Éireann, the Oireachtas)

Charles Flanagan Minister (Department of Foreign Affairs)

Noel Grealish TD (Dáil Éireann, the Oireachtas)

Michael Harty TD (Dáil Éireann, the Oireachtas)

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

Brendan Howlin TD (Dáil Éireann, the Oireachtas)

Paul Kehoe Minister of State (Department of Defence)

Martin Kenny TD (Dáil Éireann, the Oireachtas)

Marc MacSharry TD (Dáil Éireann, the Oireachtas)

Helen McEntee Minister of State (Department of Health)

Michael McGrath TD (Dáil Éireann, the Oireachtas)

Kevin "Boxer" Moran TD (Dáil Éireann, the Oireachtas)

Pat Deering TD (Dáil Éireann, the Oireachtas)

Regina Doherty Government Chief Whip and Minister (Department of the Taoiseach)

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

Michael Fitzmaurice TD (Dáil Éireann, the Oireachtas)

Pat the Cope Gallagher TD (Dáil Éireann, the Oireachtas)

Brendan Griffin TD (Dáil Éireann, the Oireachtas)

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

Martin Heydon TD (Dáil Éireann, the Oireachtas)

Heather Humphreys Minister (Department of Regional Development, Rural Affairs, Arts and the Gaeltacht)

Billy Kelleher TD (Dáil Éireann, the Oireachtas)

Seán Kyne TD (Dáil Éireann, the Oireachtas)

Charlie McConalogue TD (Dáil Éireann, the Oireachtas)

Mattie McGrath TD (Dáil Éireann, the Oireachtas)

Tony McLoughlin TD (Dáil Éireann, the Oireachtas)

Aindrias Moynihan TD (Dáil Éireann, the Oireachtas)

Eugene Murphy TD (Dáil Éireann, the Oireachtas)

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

Tom Neville TD (Dáil Éireann, the Oireachtas)

Caoimhghín Ó Caoláin TD (Dáil Éireann, the Oireachtas)

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

Willie Penrose TD (Dáil Éireann, the Oireachtas)

Thomas Pringle TD (Dáil Éireann, the Oireachtas)

Anne Rabbitte TD (Dáil Éireann, the Oireachtas)

Seán Sherlock TD (Dáil Éireann, the Oireachtas)

David Stanton Minister of State (Department of Justice and Equality)

Ray Butler Senator (Seanad)

Paudie Coffey Senator (Seanad)

Mark Daly Senator (Seanad)

Frank Feighan Senator (Seanad)

Terry Leyden Senator (Seanad)

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

Hildegarde Naughton TD (Dáil Éireann, the Oireachtas)

Darragh O'Brien TD (Dáil Éireann, the Oireachtas)

Patrick O'Donovan Minister of State (Department of Transport, Tourism and Sport)

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

John Paul Phelan TD (Dáil Éireann, the Oireachtas)

Maurice Quinlivan TD (Dáil Éireann, the Oireachtas)

Brendan Ryan TD (Dáil Éireann, the Oireachtas)

Niamh Smyth TD (Dáil Éireann, the Oireachtas)

Robert Troy TD (Dáil Éireann, the Oireachtas)

Maria Byrne Senator (Seanad)

Paul Coghlan Senator (Seanad)

Paul Daly Senator (Seanad)

Maura Hopkins Senator (Seanad)

Joe O'Reilly Senator (Seanad)

Diarmuid Wilson Senator (Seanad)

Martin Ferris TD (Dáil Éireann, the Oireachtas)

Niall Collins TD (Dáil Éireann, the Oireachtas)

Brian Stanley TD (Dáil Éireann, the Oireachtas)

Lisa Chambers TD (Dáil Éireann, the Oireachtas)

Jim Daly TD (Dáil Éireann, the Oireachtas)

Brendan Smith TD (Dáil Éireann, the Oireachtas)

Marcella Corcoran Kennedy Minister of State (Department of Health)

Seán Fleming TD (Dáil Éireann, the Oireachtas)

Michael Ring Minister of State (Department of Transport, Tourism and Sport)

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

Enda Kenny Taoiseach (Department of the Taoiseach)

Jim O'Callaghan TD (Dáil Éireann, the Oireachtas)

Micheál Martin TD (Dáil Éireann, the Oireachtas)

Alan Kelly TD (Dáil Éireann, the Oireachtas)

Matt Carthy MEP (European Parliament)

Simon Coveney Minister (Department of Housing, Planning and Local Government)

Róisín Shortall TD (Dáil Éireann, the Oireachtas)

Catherine Murphy TD (Dáil Éireann, the Oireachtas)

Stephen Donnelly TD (Dáil Éireann, the Oireachtas)

Mick Wallace TD (Dáil Éireann, the Oireachtas)