Michael Healy-Rae (Kerry, Independent)
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109. To ask the Minister for Finance his plans to address income volatility among farmers and extend income averaging, greater flexibility on step out and provision of a deposit scheme; and if he will make a statement on the matter. [35760/18]

Michael Healy-Rae (Kerry, Independent)
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110. To ask the Minister for Finance his plans to maintain a number of taxation measures that encourage farm transfer; and if he will make a statement on the matter. [35761/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 109 and 110 together.

Decisions on taxation matters including decisions (if any) in relation to farm transfer or income stabilisation measures are made in the context of the annual Budget process, and the Deputy will understand that I cannot give any indications of my plans for Budget 2019 at this time.

As the Deputy may also be aware, the 2014 Agri-tax Review was commissioned to examine agri-taxation measures and to make recommendations to ensure resources are directed towards activities of maximum benefit to the sector. This was a joint initiative between the Department of Finance and the Department of Agriculture, Food and the Marine. The review brought forward 25 recommendations. These recommendations are grouped into 6 broad categories that reflect government priorities: increase the mobility and the productive use of land, assist succession, complement wider agriculture policies and schemes, alternative farming models such as farm partnerships, responses to increasing income volatility, and general recommendations.  In particular, the review recommended the following measures to support and promote inter-generational transfer of farms:

- Retain Agricultural Relief from Capital Acquisitions Tax.

- Target Agricultural Relief from Capital Acquisitions Tax to qualified or full-time farmers or to land owners who lease land out on a long-term basis

- Retain Retirement Relief from Capital Gains Tax at current levels. For transfers under Retirement Relief, extend the eligible letting period of a qualifying asset to 25 years.

- For transfers other than to a child under Retirement Relief, as a once-off measure until the end of 2016, allow conacre lettings as eligible.

- Extend Stamp Duty Consanguinity Relief on Non-Residential Transfers to the end of 2017.

- Retain current stamp duty exemptions on transfers of land.

In 2017, the Minister Agriculture, Food and the Marine and I committed to establish an inter-departmental working group to review and assess the progress made on the implementation of tax measure recommendations contained in the Agri-taxation Review 2014 and to take stock of relevant changes in the environment in which the agri-sector operates. Work on this study is underway and its terms of reference are as follows:

1. A summary of the context, background and process of the Agri-tax Review.

2. An update of the context since the completion of the Agri-tax Review, to include: Brexit, Climate change 2020, the abolition of milk quotas.

3. A summary of outcome of Agri-taxation Review & implementation in Budgets 2015, 2016 & 2017, including a summary table of the recommendations and their implementation/current status. In particular, regard should be had to:

1. Analysing income stabilisation and the proposed farm deposit scheme, including a public consultation process and resultant submissions from stakeholders, and

2. the recommendation in the Agri-tax Review on data collection and management in order to comply with state-aid requirements.

3. The mapping of direct and tax expenditure supports available to the agricultural sector.

4. Any other matters arising in the course of the review.

I expect the study to be completed shortly.

Pearse Doherty (Donegal, Sinn Fein)
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111. To ask the Minister for Finance his views on making it mandatory for high earners to file a tax return; and if he will make a statement on the matter. [35770/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that all taxpayers who are chargeable persons under the self-assessment rules in Part 41A of the Taxes Consolidation Act (TCA) 1997 must file an annual tax return and pay any resultant tax to Revenue.

PAYE taxpayers are not required to file a tax return except in the following circumstances:

1. Individuals who are subject to the high earner’s restriction set out in Chapter 2A of Part 15 of the TCA 1997 are treated as chargeable persons for any year in which that restriction applies.  Consequently, such individuals are required to make a self-assessment tax return for the year in question.  The high earner’s restriction effectively imposes a limit on the amount of certain tax reliefs that may be availed of by high income individuals. In general, the restriction applies where an individual has adjusted income of €125,000 or more in a tax year, but can apply at a lower level where the individual has ring-fenced income, for example, interest which is subject to Deposit Interest Retention Tax. The individuals concerned must also provide details of the restriction to Revenue on Form RR1.

2. Individuals (excluding certain company directors who are treated as chargeable persons and are required to file an annual self-assessment tax return) who have combined taxable profits from non-PAYE income of not more than €5,000 per annum and who elect to pay the tax due on such profits through the PAYE system. Where an election is made, the individual must complete a tax return for that tax year when requested to so by Revenue.

3. Individuals who are requested to do so by Revenue. Each year Revenue requires a return from a subset of PAYE taxpayers based on various criteria including income.

 I am also advised that PAYE Modernisation will result in the real time reporting of income for all PAYE taxpayers. From 1 January 2019 all employers will be obliged to report to Revenue the PAYE income and the associated income tax, PRSI and USC deductions for their employees as they pay them.

I do not see that there is any need to change the current arrangements for the filing of tax returns.