Wednesday, July 30 12:25:48
Ireland's accountants today called for an increase in tax allowances for those earning E30k to E40k and are worried about the threat to Ireland's corporate tax rate.
In its pre-Budget submission published today, CCAB-I (Consultative Committee of Accountancy Bodies - Ireland) calls for reforms in the tax system on behalf of the accountancy profession to better suit a recovering economy. Proposed reforms include a targeted tax relief for workers on average wages.
"The 41pc rate of tax applies to earnings over E32,800, which is just above the average wage," according to Brian Keegan of Chartered Accountants Ireland. "This is very harsh, and we are suggesting a targeted increase in the PAYE allowance for workers earning between E30,000 and E40,000."
The accountancy profession is also concerned at the threat to Ireland's Corporation Tax take from international pressure. "Current OECD proposals that companies pay tax where their markets are located would reduce the amount of Corporation Tax payable in Ireland," said Mr Keegan.
The pre-Budget submission recommends that Ireland makes no changes in advance of an international consensus on the taxation of multinationals being reached.
The CCAB-I submission also proposes an income tax credit of 6pc to individuals who move savings out of deposit accounts into Small and Medium Enterprise ventures, and revisions to the existing Enterprise Investment Incentive Scheme to make it available to a broader range of businesses and investors.
"Getting finance to SMEs remains a problem, and the tax system can and should be used to provide reasonable rewards to private investors."
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