Gerard Murphy (Cork North West, Fine Gael)
Link to this: Individually | In context

Question 205: To ask the Minister for Finance the tax implications for farmers who do not receive their single farm payment in the year of their application; and if he will make a statement on the matter. [3557/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I have been advised by the Revenue Commissioners that for taxation purposes single farm payments can be accounted for on either a receipts basis or an annual basis. In cases where farmers make tax returns on a receipts basis the single farm payment is recognised as a receipt pertaining to the date the cheque issues from the Department of Agriculture and Food and is therefore liable to income tax in the tax year during which the payment issued. Where farmers make returns on an annual basis, the single farm payment is recognised by Revenue as a receipt accrued over the year in respect of which the payment was made. The Revenue Commissioners accept farmers treating income received in respect of single farm payments on either the receipt basis or the annual basis provided that this treatment is carried out on a consistent basis and that the election for one or other of the methods of making returns was made either from the date of commencement of farming or the year 2005.