CCAB-I made its annual Pre-Budget submission to the Minister for Finance last month.

The key items being promoted are:

• End discrimination against the self-employed in the Irish tax system through the phased introduction of a self-employed tax credit and abolish the 3% USC levy on self-employed incomes of over €100,000.
• Assist workers on the average wage by reducing the top rate of income tax to 39%. It is clear that the reduction in the income tax burden in last year’s Budget reduced the employment costs and rewarded effort and work. The submission encourages Government to continue with this progressive policy, especially as total income tax receipts are significantly higher now than at the same time last year.
• The committee also believes that more could be done to reward entrepreneurs who succeed in growing their business, by reducing the Capital Gains Tax rate which applies when business assets are sold.

Among the other recommendations are:

• Allow the Special Assignee Relief Programme (SARP) generate additional income tax for the Irish Exchequer by amending some of the restrictions which apply.
• Reward investing in Irish marketing staff in foreign countries with more effective use of the existing Foreign Earnings Deduction.
• Provide an income tax credit to individuals who move savings out of deposit accounts into SME ventures.
• Change the Enterprise Investment Incentive Scheme to make it available to a broader range of businesses and investors.
• Change the system of R&D expenditure to allow all companies claim the same level of credit for the amount they spend, irrespective of commencement date.

You can read the CCAB-I submission here.