John Brassil (Kerry, Fianna Fail) | Oireachtas source

There are a few things I would like Mr. Phelan and his team to consider on top of all the points that have been made already. In his opening statement, he stated that "I understand that one co-operative share was issued for every 1,000 gallons of milk supplied. For example, a farmer supplying 100,000 gallons of milk received 100 co-operative shares." That is factually incorrect. They got shares based on their quota not on the amount of milk they produced. If the 100,000 gallons that Mr. Phelan referred to was from a farmer who had a 50,000 quota, he got 50 shares. That reinforces the point that these were loyalty shares paid to farmers for sticking with their co-op and reinvesting in them. It was more a reward for staying than a payment. That is a critical point. It again points out the amount of information that was not there and is now coming to light. I would like Mr. Phelan to take that on board.

We are getting an extension of time which is great. I have no doubt that a test case will be taken which could take a month, six months or 18 months. I do not know how long. Mr. Phelan probably has a better indication than I do. It could take a long period of time. Farmers will be looking for tax clearance certificates in 2017 for 2016 because if they do not get a tax clearance certificate their payments for all sorts of things will not be made. Can Mr. Phelan give a clear undertaking that this issue will be dealt with separately and tax clearance certificates will be issued to these farmers to allow them to continue their business because it is a big worry for them? If this issue is in the ether somewhere and they are told they cannot be given one until the issue is sorted out, it is just opening another huge can of worms. I would like clarification on that if Mr. Phelan can give it to me.

I will add to the debate on the value of the share and how the Revenue Commissioners came to assess it. My information is that in the grey market, the number of shares traded amount to about 1% of Kerry Group shares. It is very difficult to come to a valuation based on a 1% trading. That will come into this debate down the road. Given the point made by Deputy Moynihan, which is fairly critical, if there is a ruling from the Revenue which is contrary to the one the witnesses arrived at, all bets are off. That needs to be locked down. If there is a case whereby the Revenue has determined that capital gains is to be based on these shares and not income, a complete reversal of what this letter is looking for, then to me all bets are off. The Revenue Commissioners should start 2017 with a clean sweep and outline the way it will be dealt with from 2017 onwards.

Deputy Ferris mentioned a letter of comfort. Does it exist? If it does, it has severe implications. Mr. Phelan said he has done many audits. I reiterate the point that if advice was sought on the transfer of shares for inheritance purposes and clear advice was given by Revenue that the value of these was to be at €1.27, it is hugely significant. Mr. Phelan said he is surprised that practitioners did not bring it to the fore. I argue that practitioners brought it to the fore, raised it, got a valuation and acted accordingly. All that will be taken into account in the test case and whichever way it comes out, we will have to accept it. I need to make those points. I seek a direct answer on the tax clearance going forward because it is very important for farmers.