The National Dairy Council (NDC) has reported a loss of €3.05 million in its latest set of financial results primarily because of an ongoing dispute with the Revenue Commissioners.

The financial results for the year ending December 31, 2004 show that the NDC had an income totaling more than €5.5 million - compared to over €6.2 million in 2023.

However the council, whose key objective is to "champion the role of quality pasture-based dairy and its nutrition benefits" reported a loss of €3,054,868 in 2024 which it attributed to a dispute with the Revenue Commissioners in relation to withheld VAT refunds.

According to the NDC Revenue refused VAT repayments to the council of €2.9 million for VAT periods between 2016 and 2024.

Refunds of €0.97 million were made during the period.

The NDC appealed the decision to the Tax Appeals Commission (TAC) following professional taxation and legal advice from its advisors, Deloitte.

A settlement offer was made to the Revenue Commissioners in July of this year.

According to the council an "apportionment exercise" with Revenue is ongoing, with a view to reaching a settlement.

"The NDC continues to explore all avenues of appeal in parallel, mindful of its obligations to Ireland’s dairy farmers to maximise resources and manage its revenue appropriately," the council stated.

It also said that it "remains focused on its advocacy for Ireland’s dairy farmers and the promotion of dairy products, farmed and processed in the Republic of Ireland, as part of a healthy and increasingly sustainable diet".

The NDC is a member of the EEIG European Milk Forum (EEIG EMF) a group set up to promote dairy products throughout Europe.

The financial results for the year ending December 31, 2004 included in the debtor balance an amount due to be refunded from the EEIG EMF of €702,188.

However the EEIG EMF is currently the subject of a tax audit covering the 2020 and 2021 fiscal years, which began on January 9, 2023, as the tax authorities in France do not consider that EEIG EMF is subject to VAT.

According to the NDC the EEIG EMF have obtained external professional advice on this matter and believe they are more likely than not, to achieve a successful outcome on this issue.

As at 31 December 2024 the portion of the EEIG EMF VAT under review which correlates to the National Dairy Council's participation in the relevant EU projects in the group amounts to €538,664.

In its latest set of financial accounts the council set out where its key funding sources are likely to come from in the short term.

These include: farmer levy income, EU project income and dairy businesses who buy NDC services.

However it also warned that the main risk facing the council during the financial year and anticipated in future years "is the receipt of levy contributions and maintaining sufficient reserves to allow the entity to operate efficiently and effectively".

It did also highlight the potential for an "impact" on the NDC of the final settlement with the Revenue Commissioners on the VAT dispute.

According to the financial statements the net current asset position of the National Dairy Council at the financial year end 2024 totaled €2,946,349 - this compared to a net asset position of €6,001,217 for 2023.