Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 183: To ask the Minister for Finance if the 1% levy recently introduced in the Finance (No. 2) Bill, 2008 will apply to the gross income of family farmers; and if an allowance will be made for depreciation in their case. [45228/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the income levy will apply to gross income but excluding social welfare payments and social welfare type payments such as farm retirement pensions and the rural social scheme, as well as the contributory and non-contributory State pensions.

The income levy will be calculated by applying the appropriate percentage to the farmer's gross income, after deductions of only those expenses directly associated with the performance of the trade, i.e. in accordance with the normal principles of commercial accounting. However, no deduction will be allowed for capital allowances or depreciation.