ICMSA welcome tax progress as ‘meaningful’

THE President of ICMSA, John Comer, has welcomed what he described as ‘meaningful progress’ on the question of the income tax demands made by Revenue to 400-odd farmers relating to Kerry ‘Patronage’ shares.

While he reiterated ICMSA’s firm conviction that the shares were a capital asset and not, therefore, liable to income tax, Mr Comer said that he was happy to acknowledge the movement made by the Revenue Commissioners on foot of prolonged and intense lobbying by ICMSA and others.

Kerry Co- Op members were left shellshocked by the taxman’s sudden demand over a fortnight ago, with some left facing swingeing 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 400-odd shareholders concerned before the end of the year that will supersede the previous letters and which will outline 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.