ICMSA welcomes progress on tax

ICMSA President John Comer has welcomed what he described as ‘meaningful progress’ on income tax demands made by Revenue to 400odd farmers relating to Kerry ‘patronage’ shares.

While he reiterated ICMSA’s view that the shares were a capital asset and not, therefore, liable to income tax, Mr Comer said he acknowledged the movement made by the Revenue Commissioners. Kerry Co- Op members were left shellshocked by the taxman’s sudden demand over a fortnight ago, with some left facing bills of up to €35,000.

Following an intervention by Kerry Fianna Fáil TD John Brassil, representatives of Revenue were brought before the Oireachtas Finance Committee last week where they were grilled by Deputy Brassil and colleagues on the sudden move. The result was an agreement by Revenue to give farmers an additional 40 days to pay-up on the 21-day time limit initially set.

John Comer also said that it is his understanding that Revenue will issue new letters to the affected shareholders before the end of the year, outlining a new demand made on the basis of a single year, thought to be 2011 and not 2011, 2012 and 2013 – as set out in the first letter.

ICMSA also understands that no tax will be demanded or deemed payable until the matter is finalised and that will be after a number of ‘ test’ cases have been adjudicated upon, Mr Comer added.