Relevant Matter
Matters involving public funds
Public Policy Area
Agriculture
Period
1 May, 2019 to 31 Aug, 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
Letter All Senators
Submission All Senators
Letter All TDs
Submission All TDs
Lobbying activity
The following activities occurred for this specific Subject Matter Area.
Informal communication (2-5)
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.
Simon Coveney
Tánaiste and Minister (Department of Foreign Affairs)
Joe McHugh
Minister (Department of Education and Skills)
Simon Harris
Minister (Department of Health)
Michael Healy-Rae
TD (Dáil Éireann, the Oireachtas)
Richard Bruton
Minister (Department of Environment, Climate and Communications)
Pat Breen
Minister of State (Department of Business, Enterprise and Innovation)
Heather Humphreys
Minister (Department of Business, Enterprise and Innovation)
Paschal Donohoe
Minister (Department of Finance)
Michael D'Arcy
Minister of State (Department of Finance)
John Halligan
Minister of State (Department of Business, Enterprise and Innovation)
Michael Creed
Minister (Department of Agriculture, Food and the Marine)
Charles Flanagan
Minister (Department of Justice and Equality)