Michael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I thank the Minister of State for the reply. It states, "Farmers who were tax compliant and disclosed the value received will therefore not be facing any additional income tax." As I understand it, all farmers declared the shares in their tax returns and have done so for a long time. It is bordering on insulting to use the line I have quoted. All the farmers were declaring the shares to the Revenue Commissioners for a long time. As my colleague said, the Revenue Commissioners have collected capital gains tax on the sale of these shares. It is only when the shares are part of a spin-out from the co-operative to the plc that they become valuable. To be fair to the farmers, they have been tax compliant and have been submitting information to the Revenue Commissioners. It is quite clear that the Revenue Commissioners have taken a policy decision in regard to them. Why are they changing policy? Why the heavy-handedness in the letter, including the reference to responding in 21 days. The Revenue Commissioners should have examined this in a proper, calm and rational way.

The Minister of State is implying in his response that there are farmers who are not tax compliant. According to my information and that of the many farmers to whom I have spoken over the past 36 to 48 hours, they are tax compliant. The Revenue Commissioners and the Department need to recognise that and ensure the view is not being circulated that farmers are not tax compliant. They have been declaring the full value of the shares to the Revenue Commissioners for a long time and they have been paying capital gains tax on any occasion they sold the shares, for whatever reason. Perhaps the Minister of State will re-examine this. The shares become valuable only if there is a spin-out to the plc. Perhaps clarification is needed on that. Forbearance and common sense need to apply.

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