Revenue has published eBrief No. 45/12 which sets out some specific advice for farmers when recording agricultural payments under the Single Payment Scheme on their tax returns. According to Revenue, a minority of farmers record their payments incorrectly which brings them to Revenue's attention, places an avoidable burden on them and draws Revenue resources away from focusing on non-compliant farmers that compete unfairly against compliant farmers.

Revenue reminds in eBrief No. 45/12 that payments made under the Single Payment Scheme and payments that compensate farmers for income losses caused by reductions in output or for increases in costs of a revenue nature should be included as trading receipts when preparing annual accounts and are taxable as income.

Where, however, a payment has been made specifically to compensate the farmer for identifiable capital expenditure, such payment should be deducted in arriving at qualifying expenditure for capital allowances purposes.

Revenue receives a wide range of information from other Government Departments, including details of farmers’ payments received from the Department of Agriculture, Food and the Marine. This information is analysed and compared with data in Revenue's systems and forms the selection of taxpayers for audit or other compliance interventions.

Revenue's eBrief No. 45/12 is re-produced on here.