Dáil Éireann - Volume 595 - 15 December, 2004
Written Answers. - Tax Code.
Mr. N. O’Keeffe Mr. N. O’Keeffe
142. Mr. N. O’Keeffe asked the Minister for Finance if a company (details supplied) which proposes to lease a unit at a business park and is in contravention of the planning regulations of the business park, is compliant with the criteria under the Finance Act 1997, under which the business park proprietors have been granted a tax designation certificate; and the measures he proposed to take to address this breach. [33603/04]
Mr. Cowen Mr. Cowen
Mr. Cowen: The area to which the Deputy refers was designated for tax reliefs under the enterprise area scheme. This scheme provides for tax relief in respect of capital expenditure incurred in the qualifying period on the construction or refurbishment of certain buildings and structures in enterprise areas which are used by qualifying companies in the carrying on of qualifying trading operations.
Qualifying companies for the purposes of this scheme must be approved for financial assistance under a scheme administered by Forfás, Enterprise Ireland, the Industrial Development Agency Ireland or Údarás na Gaeltachta, or must be employed in the freight forwarding business in an enterprise area adjacent to a regional airport. The company must also have been given a certificate by the Minister for Enterprise, Trade and Employment following consultation with the Minister for Finance certifying that the company is to be treated as a qualifying company. The Minister for Enterprise, Trade and Employment may not certify that a company is a qualifying company unless the company is carrying on or intends to carry on qualifying trading operations in an enterprise area and that Minister is satisfied that the carrying of such trading operations will contribute to the balanced development of the enterprise area. The qualifying trading operations in this instance are those manufacturing activities which qualify for manufacturing relief in accordance with section 443 of the Taxes Consolidation Act 1997, internationally traded services, that is, those services designated under the Industrial Development Act 1986 and freight forwarding and certain allied services in enterprise areas adjacent to the regional airports. No application has been received by me to date regarding the issue of a certificate to the company referred to by the Deputy.
Mr. Penrose Mr. Penrose
143. Mr. Penrose asked the Minister for Finance the exemptions from inheritance tax and stamp duty which are available to farmers under  35 years of age who have completed the requisite agricultural education courses and who will inherit the family farm; and if he will make a statement on the matter. [33688/04]
Mr. Cowen Mr. Cowen
Mr. Cowen: Capital acquisitions tax comprises both gift tax and inheritance tax. Agricultural relief has been available for both gift tax and inheritance tax since the introduction of capital acquisitions tax in 1976. The relief has been increased substantially in recent years. The relief is now a flat 90% reduction in the market value of all agricultural property comprised in the gift or inheritance. Agricultural property means: agricultural land, pasture and woodland in the State; crops, trees and under wood growing thereon; houses and other farm buildings appropriate to the property; and livestock, bloodstock and farm machinery thereon.
To qualify for agricultural relief the beneficiary of the gift or inheritance must be domiciled in the State and at least 80% of the market value of his or her assets must be represented by agricultural property after taking the gift or inheritance. The age of the beneficiary at the date of the gift or inheritance is not relevant for the purposes of the agricultural relief.
Agricultural assets, which do not qualify for agricultural relief because the beneficiary does not meet the conditions of the relief, may separately qualify for capital acquisitions tax business relief. Business relief will apply if the person making the gift or inheritance was carrying on a farming business and had owned the farming business for a minimum ownership period. The minimum ownership period is normally two years in the case of an inheritance and five years in the case of a gift. Business relief is also now a flat 90% reduction in the market value of all business property comprised in the gift or inheritance.
There is a full exemption from stamp duty on the transfer of agricultural land to a farmer who is under the age of 35 years and holds the requisite educational qualifications at the date of execution of the deed of the transfer. This exemption applies to such transfers where the disponer is alive. Stamp duty does not arise in the case of an inheritance.
Dáil Éireann 595 Written Answers. Tax Code.