IFA calling for tax deposit accounts to combat income volatility

Tuesday 15 July 2014 19.02
The IFA say the retention of tax reliefs which support the transfer of viable family farms is critical
The IFA say the retention of tax reliefs which support the transfer of viable family farms is critical

The Irish Farmers Association wants the Government to introduce a new tax deposit account for farmers to help them deal with income volatility in the agri-sector.

The proposed scheme would allow farmers to place a proportion of their pre-tax income on deposit in a bank account and then draw down that income as needed over the following five-year period when farm incomes are lower.

The income would then be taxable in the year that it is drawn down rather than when it is earned in the first place.

The proposal is included in the pre-Budget submission of the IFA and will be presented to the Oireachtas Committees on Finance and Agriculture later this week.

The IFA is also calling for contracts for the new agri-environmental scheme GLAS, which will pay farmers for providing environmental benefits, to start from 1 January 2015.

The IFA wants 30,000 farmers to be allowed into the scheme and to receive payments in 2015.

The organisation also said the retention of tax reliefs that support the intergenerational transfer of viable family farms is critical.

The IFA is also calling for the introduction of a tax-relieved loan scheme to help farmers to secure finance for the expansion of the diary industry ahead of the abolition of milk quotas in 2015.