Written answers

Wednesday, 3 February 2021

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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209. To ask the Minister for Finance further to Parliamentary Question No. 224 of 27 January 2021, if the sale of the horse by the farmer in question is exempt from income tax when it is with a registered handler rather than a registered trainer given it is with a registered trainer and the sale of the animal is exempt; and if he will make a statement on the matter. [5906/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that there is no income tax exemption relating to the sale of horses. Rather, where an individual’s ownership and racing of racehorses is considered a “hobby” or a “recreational activity”, it will fall outside the scope of income tax.  Where, however, the ownership and racing of racehorses forms part of a trade carried on by a person, the proceeds from the sale of a horse is not outside the scope of income tax and must be taken into account in computing income from the trade which is chargeable to income tax.   Whether an individual’s activities in relation to a racehorse constitute a trade or a hobby depends on the particular facts of the case. 

As the Deputy is referring to a particular case, it is recommended that the relevant taxpayer seeks further guidance from Revenue on the applicable tax treatment by providing the full facts of the case and submitting a query through the Revenue Technical Service.  Guidance on submitting a query is available on the Revenue website at:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-00a.pdf .

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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210. To ask the Minister for Finance if he will address a matter raised in correspondence regarding the case of a person (details supplied); and if he will make a statement on the matter. [5930/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the vehicle in question previously had diplomatic exemption from Vehicle Registration Tax (VRT), which was linked to the last owner.

To remove the diplomatic exemption from the vehicle and allow for the issue of a new Vehicle Registration Certificate, a Form VRT 19 was submitted to Revenue by the person in question in January 2020. Revenue subsequently processed the Form, and a new Vehicle Registration Certificate issued to the person from the Department of Tourism, Transport and Sport (Motor Tax Office) on 31January 2020.

Revenue has confirmed that it has had no other contact with the person concerning the vehicle during the intervening period and is not aware of any outstanding issues. If the person has any further queries or concerns regarding the Vehicle Registration Certificate, he should contact the Department of Tourism, Transport and Sport.  

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