Fergus O'Dowd (Louth, Fine Gael)
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Question 175: To ask the Tánaiste and Minister for Finance if he will address the issues raised by a group (details supplied); and if he will make a statement on the matter. [7040/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that individual payments from the salmon hardship scheme have two identifiable component parts and that one part is taxable while the other is not. The taxable component is that part of the payment which is based on a fisherman's catch and is taxable on recipients in the year of receipt. Accordingly, commercial fishermen should include this part of any payment as a receipt in their accounts. The part of the payment which is based on the 2006 licence fee is not liable to tax. I understand that when making payments Bord Iascaigh Mhara identify the amount of the payment relating to the 2006 licence fee so that this may be excluded from income tax returns.

I am also informed that to facilitate recipients wishing to spread the taxable amount over three years, eligible applicants may opt under the scheme to receive their payment in one sum or alternatively to have it paid in three equal amounts over a three-year period.