Oireachtas Joint and Select Committees

Wednesday, 7 December 2016

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Taxation Matters Relating to Kerry Co-Operative: Revenue Commissioners.

2:00 pm

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael) | Oireachtas source

Chairman, I wish to make a proposal. If it is the case that we cannot get a straight answer to that, and I mean no disrespect to Mr. Phelan as he cannot answer the question, then that body should appear before the committee as well as the Revenue Commissioners to answer our questions. We have joined-up questions that are relevant to two different bodies to which we need immediate answers. I propose that in the interests of clarity. Understandably, the committee will wish to discuss it but given the fact that we cannot get a straight answer on it today from the witnesses, I propose that any stakeholders involved in this and who are obliged to answer questions to the public be invited to sit together here so when we, as elected representatives, pose our questions they can be answered correctly by whatever body can answer them. A number of questions posed today obviously need to be answered by other, separate bodies. That is my suggestion.

Mr. Phelan mentioned that the Revenue Commissioners came across this 18 months ago. Why was something not communicated to the farming organisations or the public that this might be coming down the tracks? I understand Mr. Phelan's comment that they could not communicate it until they saw something in black and white. However, given Mr. Phelan's experience and background on these issues, obviously he saw this coming down the tracks 18 months ago. Why was there no communication to farmers or farming organisations that this might be an issue? How do the Revenue Commissioners propose that co-operatives ensure that active farmers stay with co-operative shares? The basis for this was keeping active farmers involved in co-operatives to keep them alive. If the tax bill is imposed on the patronage shares in all circumstances, it means the active farmers cannot stay with these co-operatives.

Going back to what Senator O'Donnell said about penalties, will they be imposed, and if so, how? What is the calculation in this regard? Again, from speaking to the farmers, I understand it is a question of the tax bill, the penalties, the time, what is coming down the tracks and what is next. As was mentioned earlier, these farmers are doing the right thing, making declarations, being upfront, trying to pay their taxes and trying to do the best they can to keep a business that is under pressure alive. I would be grateful for responses to my comments.

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