The Irish Farmers' Association - IFA

Lobbying Organisation The Irish Farmers' Association - IFA

Date published 21 Jan, 2019

Relevant Matter Matters involving public funds

Public Policy Area Finance

Period 1 Sep, 2018 to 31 Dec, 2018

Specific Details Budget 2019 IFA Submission - Taxation

Intended results Extension of Income Averaging to self-employed farmers with other income - IFA proposes that, where a farmer or their spouse has an additional self-employed source of income, income averaging should be allowed on farm profits. Increasing Flexibility in Income Averaging ‘Step-Out' - IFA proposes that a farmer should be allowed to ‘step-out' of income averaging more than once in a five-year period, where he is not carrying an unpaid deferred tax amount from a previous ‘step-out'. For example, if the farmer ‘steps out' from income averaging in Year 1 and repays the deferred amount in Years 2 and 3, he should be eligible to ‘step-out' again in Years 4 or 5 of a cycle. Deposit scheme - IFA supports the introduction of an adapted ICOS proposal based on the 5-5-5 model, which allows all farmers to put aside 5% of their gross receipts, whether in their co-op or specially assigned bank account. This money is then available for drawn down within the next 5 years, and the tax due would be paid on the year of withdrawal. Earned Income Tax Credit - The commitment in the Programme for Government to increase the Earned Income Tax Credit to €1,650 for the self-employed, to match the PAYE credit must be implemented in full. The Earned Income Tax Credit must be increased from its 2018 level of €1,150 to €1,650 in October's budget, to be in place from 1st January 2019. Stamp Duty relief for Young Farmers - IFA proposes there should be an extension of this relief, to encourage the timely transfer of family farms. Rates of Stamp Duty on Commercial Property - IFA proposes that agriculture is removed from the commercial definition and revised in line with the residential stamp duty charge of 1%, up to €1m and 2% thereafter. Succession Farm Partnerships, 80% asset transfer - IFA is proposing that this should be reduced to 65% to reach the correct balance between encouraging the timely transfer of farms to the next generation and providing income security to the transferring generation. Agricultural/Business Relief and Capital Acquisitions Tax (CAT) Values - IFA proposes that the retention of 90% Agricultural Relief is critical to support the transfer of economically viable family farms. To ensure that farms of a viable size can continue to be transferred, IFA supports the commitment in the Programme for Government to increase the Category A threshold (parent and child) from the current rate of €310,000 to €500,000 in future budgets. Vaccines and Herd Health products - With reference to VAT on non-oral animal medicines, the IFA is seeking the application of the 5% rate currently allowable under Council Directive 2006/112/EC. IFA is seeking a commitment from the Government, that the 0% VAT rate will be applied as soon as is possible on adoption of the EU Council Directive. CGT Entrepreneur Relief - IFA proposes that the lifetime limit of €1m on the CGT Entrepreneur relief should be increased in Budget 2019. The enhancement of CGT Entrepreneur Relief is an important measure to encourage risk taking and investment, and the subsequent disposal of business assets during an individual's lifetime Interaction of CGT Entrepreneur Relief and CGT Retirement Relief - The IFA proposes that the interaction between the two CGT reliefs should be removed, and that the two reliefs should be standalone. An individual should be able to avail, in full, of the CGT Entrepreneur Relief and the CGT Retirement Relief over the course of their lifetime, subject to satisfying the qualifying conditions of each relief. Focus Agricultural Relief for Capital Acquisitions Tax for the genuine farmer - IFA proposes that to avail of the Agricultural Relief the transferor or transferee, or a combination of both, has to farm or have farmed the land for a minimum of 10 years, similar to the qualifying business asset definition in the existing CGT relief. Furthermore, that the retention period of the individual receiving the gift / inheritance should be increased from 6 to 15 years. Contract rearing / VAT - IFA proposes a review of VAT rates on contract rearing. VAT on farm buildings - IFA proposes that a flat-rate farmer should not have to pass on the charge of VAT, as it could have a negative impact on farm consolidation and expansion. Excise Duty on Fuel - The IFA proposes the current rates on fuel and diesel remain unchanged. Farm Safety incentive and employee flat-rate expenses - To minimise the risk on farms, IFA proposes VAT should be removed on farm safety equipment, to support farmers to purchase / maintain equipment to the best safety standards. IFA proposes that to encourage safe working farm environments, the flat-rate expense allowance list should also include agricultural workers, where the employee supplies their own equipment in-line with similar employees in the sector estimated at a rate of €651.70 Retention of Irish Agricultural Relief for UK land - IFA proposes there should be a retention of Irish agricultural relief for all farmers who have holdings that are in both Ireland and UK. Collaborative farming partnership fund - The fund for this is diminishing and IFA proposes that this grant is essential and should be extended. Stock Relief - To support the industry in achieving increased output targets over the coming decade, IFA proposes that stock relief should be extended to include all registered farm partnerships and both the 25% general Stock Relief and 100% Stock Relief for Young Trained Farmers are extended past the current proposed expiry date of 31st December 2018. Supporting employment and training in SMEs - Apprenticeship supports - IFA proposes that incentives through the tax or Social Protection system should be provided for small business employers who take on apprentices in an approved programme e.g. similar to the Apprenticeship Job Creation Tax Credit scheme currently operating in Canada or Jobs Plus employment incentive scheme. Incentives to Support the Domestic Artisan Cider Industry - IFA proposes that Government support should be provided to encourage the growth of the small-scale domestic artisan cider industries Removal of the upper excise band for cider, resulting in a single rate of duty of €94.46/hectolitre and establishment of an Artisan Cider Manufacturers Licence for annual production quantities up to 1,000 hectolitres. Such a licence would permit both retail and wholesale sale

Name of person primarily responsible for lobbying on this activity Joe Healy, IFA President, Martin Stapleton, IFA Farm Business Chair

Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?) No

Did you manage or direct a grassroots campaign? Yes

What is the directive you gave to the grassroots campaigners? To lobby Oireactas members on IFA's 2019 pre-budget submission items

Was this lobbying done on behalf of a client? No

Mass communications

Email All Oireachtas Members

Submission All Oireachtas Members

Email All MEPs

Submission All MEPs

Email All MEPs

Lobbying activity

The following activities occurred for this specific Subject Matter Area.

Lobby day (1)

Meeting (6-10)

Email (11-20)

Social Media (11-20)

Event / Reception (1)

Designated public officials lobbied

The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them. As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.

John Brassil TD (Dáil Éireann, the Oireachtas)

Declan Breathnach TD (Dáil Éireann, the Oireachtas)

James Browne TD (Dáil Éireann, the Oireachtas)

Pat Buckley TD (Dáil Éireann, the Oireachtas)

Peter Burke TD (Dáil Éireann, the Oireachtas)

Jackie Cahill TD (Dáil Éireann, the Oireachtas)

Dara Calleary TD (Dáil Éireann, the Oireachtas)

Seán Canney TD (Dáil Éireann, the Oireachtas)

Joe Carey TD (Dáil Éireann, the Oireachtas)

Pat Casey TD (Dáil Éireann, the Oireachtas)

Shane Cassells TD (Dáil Éireann, the Oireachtas)

Lisa Chambers TD (Dáil Éireann, the Oireachtas)

Michael Collins TD (Dáil Éireann, the Oireachtas)

Niall Collins TD (Dáil Éireann, the Oireachtas)

Marcella Corcoran Kennedy TD (Dáil Éireann, the Oireachtas)

Pat Deering TD (Dáil Éireann, the Oireachtas)

Timmy Dooley TD (Dáil Éireann, the Oireachtas)

Bernard Durkan TD (Dáil Éireann, the Oireachtas)

Martin Ferris TD (Dáil Éireann, the Oireachtas)

Michael Fitzmaurice TD (Dáil Éireann, the Oireachtas)

Seán Fleming TD (Dáil Éireann, the Oireachtas)

Kathleen Funchion TD (Dáil Éireann, the Oireachtas)

Michael Harty TD (Dáil Éireann, the Oireachtas)

Danny Healy-Rae TD (Dáil Éireann, the Oireachtas)

Michael Healy-Rae TD (Dáil Éireann, the Oireachtas)

Martin Heydon TD (Dáil Éireann, the Oireachtas)

Billy Kelleher TD (Dáil Éireann, the Oireachtas)

Martin Kenny TD (Dáil Éireann, the Oireachtas)

Mattie McGrath TD (Dáil Éireann, the Oireachtas)

Aindrias Moynihan TD (Dáil Éireann, the Oireachtas)

Michael Moynihan TD (Dáil Éireann, the Oireachtas)

Eugene Murphy TD (Dáil Éireann, the Oireachtas)

Margaret Murphy O'Mahony TD (Dáil Éireann, the Oireachtas)

Carol Nolan TD (Dáil Éireann, the Oireachtas)

Jim Daly Minister of State (Department of Health)

Damein English Minister of State (Department of Housing, Planning, Community and Local Government)

Seán Kyne Minister of State (Department of Rural and Community Development)

Helen McEntee Minister of State (Department of Foreign Affairs)

Denis Naughten Minister (Department of Environment, Climate and Communications)

Willie O'Dea TD (Dáil Éireann, the Oireachtas)

Patrick O'Donovan Minister of State (Department of Finance)

Kevin O'Keeffe TD (Dáil Éireann, the Oireachtas)

Willie Penrose TD (Dáil Éireann, the Oireachtas)

John Paul Phelan Minister of State (Department of Housing, Planning and Local Government)

Anne Rabbitte TD (Dáil Éireann, the Oireachtas)

Eamon Scanlon TD (Dáil Éireann, the Oireachtas)

Brendan Smith TD (Dáil Éireann, the Oireachtas)

Brian Stanley TD (Dáil Éireann, the Oireachtas)

David Stanton Minister of State (Department of Justice and Equality)

Peadar Tóibín TD (Dáil Éireann, the Oireachtas)

Robert Troy TD (Dáil Éireann, the Oireachtas)

Paddy Burke Senator (Seanad)

Colm Burke Senator (Seanad)

Maria Byrne Senator (Seanad)

Paudie Coffey Senator (Seanad)

Rose Conway-Walsh Senator (Seanad)

Mark Daly Senator (Seanad)

Paul Daly Senator (Seanad)

Maura Hopkins Senator (Seanad)

Tim Lombard Senator (Seanad)

Ian Marshall Senator (Seanad)

Michelle Mulherin Senator (Seanad)

Jennifer Murnane O'Connor Senator (Seanad)

Kieran O'Donnell Senator (Seanad)

John O'Mahony Senator (Seanad)

Joe O'Reilly Senator (Seanad)

Grace O'Sullivan Senator (Seanad)

Diarmuid Wilson Senator (Seanad)

Paschal Donohoe Minister (Department of Finance)

Pearse Doherty TD (Dáil Éireann, the Oireachtas)

Pat Breen Minister of State (Department of Business, Enterprise and Innovation)

Noel Grealish TD (Dáil Éireann, the Oireachtas)

Enda Kenny TD (Dáil Éireann, the Oireachtas)

Paul Kehoe Minister of State (Department of Defence)

John Halligan Minister of State (Department of Business, Enterprise and Innovation)

Billy Lawless Senator (Seanad)

Dara Murphy TD (Dáil Éireann, the Oireachtas)

Alan Kelly TD (Dáil Éireann, the Oireachtas)

Michael Creed Minister (Department of Agriculture, Food and the Marine)

Michael Healy-Rae TD (Dáil Éireann, the Oireachtas)

Damien Brady Councillor (Cavan County Council)

Daniel Downey Councillor (Cavan County Council)

Paddy McDonald Councillor (Cavan County Council)

Noel Grealish TD (Dáil Éireann, the Oireachtas)

Éamon Ó Cuív TD (Dáil Éireann, the Oireachtas)

Ciarán Cannon Minister of State for the Diaspora and Overseas Development Aid (Department of Foreign Affairs)

Leo Varadkar Taoiseach (Department of the Taoiseach)

Philip O'Callaghan Special Adviser (Department of the Taoiseach)