Clare Daly (Dublin Fingal, Independent)
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182. To ask the Minister for Finance further to Parliamentary Question No. 46 of 24 October 2017, if audit examinations have been carried out by the Revenue Commissioners to establish if there is still systematic excess of flat rate payments of VAT on input costs in the poultry sector. [39983/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 86A of the VAT Consolidation Act 2010 was introduced in Finance Act 2016 to provide a mechanism for addressing situations where the business models in any agricultural sector allow for higher levels of flat-rate addition payments to be paid compared with the VAT borne on input costs.

I am advised by the Revenue Commissioners that, following the introduction of Section 86A of the VAT Consolidation Act 2010, a detailed examination of the business structures, models and contractual arrangements in place between parties within the sector was undertaken. Detailed examinations are being carried out on a statistically representative sample of flat-rate farmers operating in the poultry sector to determine if there is a systematic excess of the amount of flat-rate addition payments in the sector.

The first phase of interventions has been completed and a second phase of interventions will be completed shortly. At the conclusion of this examination, if there is evidence of overcompensation within that sector as a result of business structures and contractual arrangements, Revenue will complete a report to be submitted to my Department. Where, following this review, I am satisfied that there is a systematic excess of flat-rate addition payments over VAT on inputs incurred by flat-rate farmers in that sector, that sector may be excluded from the flat-rate scheme by way of Ministerial Order .