Dáil Éireann - Volume 639 - 16 October, 2007
Written Answers. - Fishing Industry Development.
Deputy P. J. Sheehan Deputy P. J. Sheehan
Deputy P. J. Sheehan asked the Minister for Communications, Energy and Natural Resources if the salmon hardship compensatory funding will be exempt from income tax to the salmon fishermen receiving these payments in line with the decommissioning grant paid to the white fish fleet; and if he will make a statement on the matter. [23800/07]
Deputy Eamon Ryan Deputy Eamon Ryan
Deputy Eamon Ryan: The treatment of payments made from the Salmon Hardship Fund for tax purposes is a matter for the Revenue Commissioners in their assessment of each individual’s liabilities. I am advised, however, that the Revenue Commissioners have indicated that payments from the Hardship Fund will be taxable on recipients as income in the year of receipt. Therefore, commercial fishermen will have to include any payment received under the scheme as a receipt in their accounts. However, that part of the payment which relates to payment of six times the value of the 2006 licence fee will not be liable to tax.
I understand that, when making payments from the fund, BIM, who are administering the scheme, will identify that part which is specified as a multiple of the 2006 licence fee so that recipients can exclude that amount from their income tax returns. Eligible applicants may receive any payment due under the scheme as a single payment or they may opt to spread any payment due over a three-year period.
Dáil Éireann 639 Written Answers. Fishing Industry Development.