Noonan says there's no discrimination against farmers in Kerry Co-op share issues
The Minster for Finance, Michael Noonan has rejected suggestions that farmers have been discriminated against in relation to the continuing saga concerning Kerry Co-op patronage shares.
Speaking at a Dail debate on the issue recently, the Minister said he knows there are points concerning this issue that are ‘arguable’ and said that is why he is following the Revenue advice and saying this should be appealed on a test case basis to see where the law lies.
Minister Noonan said the way Revenue operates and has always operated, is in accordance with a long-established taxation principle that where consideration is received for services rendered or produce sold, that consideration is subject to taxation as part of an individual's income.
“In other words, regardless of whether one is paid in cash or in kind, one has a tax liability if one is paid in kind in lieu of cash.
“That is the principle and that has always been the case.
“If one is paid in kind instead of cash, one is liable for tax on the monetary value of whatever the payment in kind is.
“Revenue now deems that discounted shares were payment in kind for each 1,000 litres of milk.
“That is the case it is making. That should be tested, and it is well worth testing it, but Revenue is not changing the law or its practice. It is doing what it does with every taxpayer. It is applying the law,” the Minister said.