Noo­nan vow on tax re­liefs

Irish Independent - Farming - - News -

FARM­ERS will be breath­ing a sigh of re­lief fol­low­ing Fi­nance Min­is­ter Michael Noo­nan’s pledge not to re­duce the €100m of an­nual tax re­liefs cur­rently avail­able to farm­ers.

Speak­ing at the IFA’s na­tional coun­cil meet­ing in Dublin on Fri­day, Min­is­ter Noo­nan said that the fo­cus of the taxation re­view cur­rently un­der way is look­ing at re-al­lo­cat­ing in­cen­tives to max­imise growth and pro­duc­tiv­ity in the sec­tor.

The farm or­gan­i­sa­tion is push­ing for in­creased stock re­lief mea­sures and ac­cel­er­ated cap­i­tal al­lowances to al­low farm­ers to in­vest up to €2bn in their bid to ramp up pro­duc­tion over the com­ing years.

The IFA has also called for the adop­tion of an Aus­tralian model to taxation, where farm­ers can park a por­tion of their in­come in a good year to draw on as a ‘rainy-day’ fund dur­ing sub­se­quent bad years. The in­come would only be­come tax­able in the year that it is be­ing drawn down in the model.

This would be in ad­di­tion to in­come av­er­ag­ing that al­ready helps farm­ers deal with in­creased price and pro­duc­tion vo­latil­ity which, ac­cord­ing to the IFA, puts huge pres­sure on farm cash­flows. IFA pres­i­dent Ed­die Downey is also look­ing for the Cap­i­tal Ac­qui­si­tion Tax (CAT) ex­emp­tion thresh­olds to be re­ex­am­ined in the con­text of ris­ing farm as­set val­ues. “At a min­i­mum, CPI in­dex­a­tion will have to ap­ply to all as­sets sub­ject to cap­i­tal taxes.”

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