The Small Firms Association (SFA) has today launched a new campaign - A Supportive Tax Environment for Small Firms - in collaboration with PKF O’Connor and Leddy & Holmes. The association is calling for a whole-of-government national Small Business Strategy, with a roadmap towards significant policy goals including increased productivity and export diversification.
The SFA believe that the current CGT rate of 33% should be reduced immediately to 28% and ultimately to 20%, in line with the OECD average. The Association also wants to increase the lifetime limit of €1m for Entrepreneur Relief immediately to at least €5m and in the longer term to €15m, and to introduce investor relief at a 10% CGT rate up to lifetime taxable gains of €1m.
Furthermore, the SFA want to reduce the interest rate for late payment of tax and amend fixed penalties to be more proportionate to the level of the tax liability.
Speaking today, SFA Director, Sven Spollen-Behrens said, "Tax policy can have a very significant impact on several areas affecting Irish small and indigenous businesses such as: investment, expansion, and attracting new talent. The administration and cost of operating the tax system can also be very onerous on small businesses. To support small businesses, we are recommending changes to our current tax policies under three tax pillars investment, employment and administration."