Kerry suppliers can meet with tax advisors on patronage shares issue next week
Some 400 Kerry suppliers today received 2011 Income Tax Assessment letters from the Revenue Commissioners in relation to patronage shares they hold in Kerry Co-op.
Affected suppliers have been given 30 days to engage with the Revenue in response to the letter.
Suppliers can respond by either stating that they plan on paying the tax demands and therefore admitting they are liable to tax on the shares or stating that they will be appealing the assessment.
A spokesperson for Kerry Co-op said that the co-op and its advisors emailed a briefing update to [tax] Practitioners in the region on Christmas week.
“This update advised that Assessment Notices were likely to be issued by the Revenue during the week after Christmas.
In summary, this update advised the Practitioners on the assessment appeal process and the basis on which assessments could be appealed.
“It also informed Practitioners that the Society’s tax advisers, Deloitte, will be available in Tralee and Limerick to advise them and their clients on the assessment appeal process.
“These meetings are scheduled for the Rose Hotel, Tralee on Tuesday and Wednesday next [January 10 and 11] and at the Deloitte office in Limerick on Thursday, January 12.”
It is understood that the meetings will be full day sessions, where farmers and their tax practitioners will be able to sit down with Deloitte to discuss their individual situations.
In November, some 400 farmers supplying Kerry Co-op were issued with letters from the Revenue which showed the possible under declaration of tax on patronage shares issued to them in the years 2011-2013.
A second letter, issued in December, said that it is Revenue’s view that the true market value of the shares received at par is correctly assessable as a trading receipt of each affected farming business and is therefore assessable to income tax.
The second letter also said that assessments for the years 2012 and 2013 have been deferred for the moment.
Revenue said it will require confirmation from each affected farmer in writing if he or she wishes to designate Kerry Co-op or its agent to represent each farmer should a test appeal case be brought before the Tax Appeals Commission (TAC).