In its pre-budget 2014 submission to Minister Noonan, CCAB-I recommends changes to encourage domestic and international investment in Ireland. The formulation of clear and predictable tax policies will allow investors to make confident decisions to commit money in the SME sector or to locate an international operation in Ireland.

CCAB-I examines four key aspects of the tax system – domestic investment, foreign investment, property and fairness and offers proposals to get money back circulating in the Irish economy.

Domestic Investment

• The Employment and Investment Incentive Scheme relief should be removed from the High Income Earner Restriction and extended to service businesses.
• Seed Capital Relief should be amended to be more flexible for starting entrepreneurs.
• R&D tax credits should be transferrable to lower paid employees.
• A special Income Tax rate of 12.5% on bonuses paid to employees and inventors directly involved in innovation and patents should be introduced.
• A special CGT rate of 12.5% on gains made by entrepreneurs (subject to a cap) should be introduced.
• Support marketing activities in major markets for Ireland such as the US, Switzerland and Japan by extending the Foreign Earnings Deduction.

Foreign Investment

• The Special Assignee Relief Programme should be calculated by reference to total pay, and should offer relief from USC and PRSI.
• Ireland's Corporation Tax base rules must not be changed unilaterally.

Property

• Landlords should receive full tax relief on the interest they pay on their loans.
• The seven-year CGT exemption for property purchases should be extended.

Fairness

• There must be no change to the income tax pay and file deadlines for the self employed.
• Urgent reform of the biased legal professional privilege rules and the Tax Appeals system is required.

CCAB-I (Consultative Committee of Accountancy Bodies – Ireland) is the representative grouping for the main accountancy bodies in Ireland. It 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.

The CCAB-I 2014 Pre-Budget submission is re-published here. The full version is available on the Chartered Accountants Ireland website.