Paul Gavan (Sinn Fein) | Oireachtas source

I move recommendation No. 35:

In page 161, between lines 12 and 13, to insert the following:

“Report on use of agricultural land by wealthy individuals for tax planning purposes

101. The Minister shall, within 3 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the use of agricultural land by wealthy individuals for tax planning purposes and the effect this has on the price of agricultural land and the variability of family farms, including an assessment of the effectiveness of both the current asset and farmer test, paying particular attention to the issue of leasing in the case of the latter.”.

This recommendation calls for a report on the use of agricultural land by wealthy individuals for tax planning purposes. It states:

The Minister shall, within 3 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the use of agricultural land by wealthy individuals for tax planning purposes and the effect this has on the price of agricultural land and the variability of family farms, including an assessment of the effectiveness of both the current asset and farmer test, paying particular attention to the issue of leasing in the case of the latter.

I find myself in agreement with Senator McDowell, which does not happen often. He made reference to this point and when you have left and right coming together, there must be some common ground. I hope the Minister of State will acknowledge that, as things stand, agricultural relief can be used by wealthy individuals to reduce inheritance tax. This can drive up the price of agricultural land as it is being acquired for tax purposes rather than genuine agricultural reasons. It is hard enough for smaller farmers to compete with wealthier farmers and farm enterprises without having to compete against anyone else. We would review the farmer test for agricultural relief to ensure that the relief is protected for farmers only. Wealthy individuals should not be incentivised to purchase farmland for tax reasons as this can drive up the price for farmers. The Government reform of the capital acquisitions tax, CAT, agricultural relief is a step in the right direction but a further review is needed.