The focus of the CCAB-I Pre-Budget 2018 submission is measures to assist Irish businesses and taxpayers prepare for commerce post Brexit. The submission looks at the tax measures we have control over and explores what needs to be done now so Ireland is ready to grasp all of the opportunities arising from Brexit.

The key themes and recommendations are:

Customs challenge

• We need to plan for the implementation of customs controls now in light of Brexit

VAT challenge

• A postponed method of accounting for VAT needs to be introduced post Brexit

Getting the income tax system ready

• The Irish income tax system is uncompetitive by international standards. A targeted credit should be introduced to help taxpayers transition from the standard rate band to the marginal rate band. The Government should not yield to populist pressure to increase taxes for high income earners by removing the PAYE credit/Earned Income Credit or by increasing the top rate of the USC
• If the USC system is merged with PRSI, then the contribution principle should be applied to make a clear link between contributions and benefits

Share based remuneration

• A similar regime to the UK’s Enterprise Management Incentive should be adopted in Ireland and SME share-based remuneration tax measures should be fully integrated with other reliefs and the Companies Act 2014

Tax treatments in need of technical repair

• The rules and conditions for Entrepreneur’s relief should be compatible with other CGT reliefs
• The CAT rate should be reduced to realign us with international rates
• The restrictions to the Dwelling House Exemption introduced in Finance Act 2016 should be reversed

Companies Act 2014

• Tax legislation urgently needs to be updated to reflect the provisions of the Companies Act 2014

Revenue Customer Service Standards

• An independent evaluation is needed so the issues that are hindering the tax agent’s work when dealing with a client’s routine tax affairs are identified and resolved

Legal Professional Privilege

• The principle should not be recognised for services relating to tax planning and tax schemes

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.

You can read the main content of the CCAB-I Pre-Budget 2018 submission here.