Written answers

Wednesday, 13 October 2010

9:00 pm

Photo of John CreganJohn Cregan (Limerick West, Fianna Fail)
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Question 145: To ask the Minister for Finance if he will confirm that VAT is refundable to farmers who install individual electricity wind turbines on their farms and if these turbines are considered a fixed asset for the purposes of a VAT refund [36534/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Farmers who are registered for VAT are accountable persons for VAT in respect of all their taxable activities, whether those activities consist solely of farming or both farming and other activities such as the generation of electricity for provision to the national grid. As accountable persons for VAT, they would be entitled to claim input credit for VAT charged on the installation of an alternative energy generator, such as a wind turbine, for use in their taxable activities. In so far as farmers who are not registered for VAT are concerned, they are not in the normal course entitled to credit for, or repayment of, VAT incurred by them on their business inputs. The Value-Added Tax (Refund of Tax) (No 25) Order, 1993 provides for refunds to unregistered farmers for tax borne on the "construction, extension, alteration or reconstruction of any building or structure which is designed for use solely or mainly for the purposes of a farming business". However, while the installation of an alternative energy generator may be the construction of a structure, such a structure is not "designed for use solely or mainly for the purposes of a farming business". It is designed rather to generate electricity for wherever required. Consequently, the installation of alternative energy generators does not come within the scope of the VAT refund order.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 146: To ask the Minister for Finance if a person in receipt of partial rent supplement but making rental contributions can qualify for rent relief [36538/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that where an individual, who is in receipt of partial rent supplement in respect of the rent due on a property, pays an additional amount of qualifying rent from their own funds for that property, then a claim can be made by that individual under Section 473 Taxes Consolidation Act 1997 for rent credit in respect of the additional sum paid subject to the normal specified limits. Qualifying rent for the purposes of Section 473 is rent paid for the bare right to use, occupy or enjoy the premises. Accordingly any payments in respect of the provision of goods and services are not eligible for relief. In addition, rent paid to local authorities, government departments or the Office of Public works does not qualify for tax relief. Currently, a single person aged under 55 can claim a credit on rent paid of up to €2,000 per annum. For married or widowed persons under 55, the limit is €4,000. For individuals aged 55 or over, the specified limits are doubled.

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