Ireland's farmers contributed 1.1 per cent of the total income-tax take in 2001 compared to 82.6 per cent from the PAYE sector and 16.3 per cent from other self-employed people.
The figures, contained in the Department of Agriculture's Annual Review and Outlook 2001-2002, show that 101,000 farmers were assessed for tax during the year. In addition, some 14,000 farmers were assessed during the year, bringing the total number on record with the Revenue Commissioners to 115,000.
Provisional estimates, according to the review, showed that only 40,100 farmers were actually liable to pay tax on farming profits, and these were expected to yield €97 million. An estimated €33 million was paid by farmers in PRSI contributions.
The review added that the most recent data on PAYE tax paid by farmers and/or their spouses on other earned income dated back to 1998-1999 and showed that €160 million had been paid by some 32,200 individuals or couples involved in farming.
The figures showed that the average individual tax payment from farmers on farm profits last year stood at €1,173. It was €7,856 from other self-employed people and €7,103 from PAYE workers.
In the period since 1995 the average income-tax paid by farmers has not varied by more than €300 a year. In 1995, the average payment was €1,183, and this rose to €1,281 the following year. In 1997 it increased again to €1,362, but it fell back in the following year to €1,220. The average increased again in 1999 to €1,319 and by a further €40 to €1,359 in the following year. In the 1995-2001 period the average amount of tax paid increased from €5,054 to €7,103.
The tax paid on farm profits actually dropped last year to €97 million from €103 million in 2000.
The tax on farm profits was €105 million in 1999; €99 million in 1998; €108 million in 1997; €99 million in 1996 and €89 million in 1995.
The overall tax take from farmers on farm profits, PAYE on earned income and PRSI payments has risen from €226 million in 1995 to €300 million in 1999, the last year for which figures are available.
The report stated that 45 per cent of farmers or their spouses had an off-farm job in the year 2000, according to the Teagasc national farm survey.
The majority of these jobs were in the provision of agricultural services or in the construction industry.