The CCAB-I has made its pre-budget submission to Minister Noonan. The Consultative Committee of Accountancy Bodies – Ireland is the representative committee for the main accountancy bodies in Ireland. While recognising the constraints of the National Recovery Plan and the budgetary situation generally, the submission offers several ideas which can provide stimulus to the economy without necessarily prejudicing Exchequer returns.

The key points of the submission include

1. There is no certainty available to either existing taxpayers or to international investors. This is diverting investment from Ireland. We need to reinforce the message that the 12 1/2% Corporation tax rate is here to stay. We need assurances that the pension levy will not be extended, and that tax reliefs will not be withdrawn retrospectively.
2. Our tax system still has a role in influencing business behaviour. Investments made through the new employment and investment scheme should be removed from the list of specified reliefs for the high earners restriction. The EIS should be biased towards start-up ventures by allowing full tax relief where the investment is made in a start-up company.
3. We suggest a form of rollover relief on gains accruing from business transfers provided that the disposal proceeds are invested in government bonds.
4. We propose a reordering of the charge to tax to reward innovation carried out in this country. Income from research, development and innovation should be taxed at lower rates.
5. The rate of stamp duty on commercial premises of 6% should be temporarily reduced to stimulate transactions in this market.

CCAB-I comprises Chartered Accountants Ireland, the Association of Chartered Certified Accountants, the Institute of Certified Public Accountants in Ireland, and the Chartered Institute of Management Accountants. An abridged version of the pre-budget submission is available on here.