This report, presented to the Minister for Enterprise Trade and Employment in mid-May contains pragmatic recommendations in relation to tax administration, many of which were advocated by ICAI.

The specific tax recommendations are:

• Use the Regulatory Impact Analysis (RIA) mechanism to conduct a systematic review over a seven-year period, with annual targets, of existing regulations that have greatest impact on small businesses (Taxation, Health and Safety, and Employment) and amend these regulations to reduce the burden of compliance. he review should complement the work of, and be carried out in consultation with, the Business Regulation Forum.
• Newregulations: During Regulatory Impact Analysis, explicitly consider amendments or exemptions for small businesses. Provide Government departments with specific guidelines on the treatment of small business in that context.
• Implementation: Wherever possible, use a risk-based approach to regulatory implementation and enforcement. Allow new regulations to come into effect on only two dates each year to facilitate small businesses to keep track of regulatory change.

The report goes on to say that the following actions in relation to taxation should be taken immediately to benefit small businesses (and indeed, all businesses):

• Increase the turnover thresholds for VAT exemption from €55,000 to €70,000 (on goods) and from €27,500 to €35,000 (on services)
• Allow the preliminary payment of corporation tax to be based on the previous year's assessment where the tax for the previous year is less than €100,000 (currently €50,000)
• Raise the threshold for using the cash basis of accounting for VAT (for non-retail businesses) to at least €1 million

Members who are familiar with the Institute's lobbying activities will recognize that these recommendations featured in our pre-Budget and pre-Finance Act submissions this year. ICAI actively supported the work of the Small Business Forum, and going forward will seek to ensure that these much-needed measures are put in place.