Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context | Oireachtas source

189. To ask the Minister for Finance his views on the simplification of income tax returns for farmers with low turnover; and if he will make a statement on the matter. [35936/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by the Revenue Commissioners that the simplification agenda for all taxpayers is an issue that they are very strongly committed to.

In relation to tax returns, there is a suite of simplified paper income tax returns which were introduced by the Commissioners in 2011 specifically as part of a customer service initiative aimed at reducing the administrative burden on any taxpayer whose tax affairs are not overly complex. These returns include a Form 11S, a short income tax return. It is acknowledged by taxpayers and agents that details required on this form are not overly burdensome and a much smaller number of fields have to be completed than for the full Form 11. 

The main criteria used by Revenue to issue the Form 11S to taxpayers are:

- the taxpayer is not a mandatory electronic filer on Revenue's records and is therefore not obliged to file and pay using Revenue's On-Line Service (ROS);

- the previous year's gross turnover returned by the taxpayer is less than €75,000;

- the taxpayer has only declared 1 or 2 trades in the previous year;

- the total of all other income in the previous year is less than €50,000.

Any taxpayer who meets the above criteria is issued with a Form 11S, while those who do not meet the criteria will receive the longer version of the paper return Form 11 or will file electronically, via ROS, Revenue's On-Line Service.

There are significant advantages for a taxpayer in filing their tax return using ROS. These include:

- relevant information that is available to Revenue is pre-populated on the return;

- the taxpayer has only to input data to the income panels and accounts details relevant to their business and can ignore other non-relevant parts of the return;

- any liabilities in respect of Income Tax, PRSI & USC are automatically calculated within the system;

- an extended return filing date is available.

I am advised by the Commissioners that 87% of all farmers who filed their Form 11 in 2012 did so through the online system, sending a very clear signal that they find the online version very user friendly. This mirrors the experience of other taxpayers who also use the ROS system extensively to file their returns. A further 5% of farmers were provided with a simplified return Form 11S for 2012.

I am further advised that the Commissioners have recently been in correspondence with farmers' representatives on the subject of simplified tax returns and they have offered to have further discussions with those representatives, if required.

In addition, I am informed that Revenue will have their usual strong representation at this week's National Ploughing Championship where a team of ROS Liaison Officers will be available to provide information about online filing as well as tax return filing in general.

It appears to me that the Revenue Commissioners have put in place options for those taxpayers, including farmers, whose tax affairs are not overly complex to make it easier for them to file their returns. In particular, the ROS return has significant advantages for all taxpayers and this is widely acknowledged. I would strongly encourage all taxpayers to file their tax returns through ROS.