No tax problems over late cheques

FARMERS whose 2005 Single Payment cheque didn’t arrive until 2006 can consider that the payment was made in 2005, for tax purposes.

“Farmers who operate accruals or annual accounts can attribute income to the correct year, regardless of when it was actually paid”, said Finance Minister Brian Cowen, during Committee Stage debates on the Finance Bill.

He was responding to an amendment proposal from Denis Naughten TD Fine Gael, who raised concerns that if a payment due in 2005 is not provided until 2006, farmers would not be able to average their incomes over three years.