TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Commercial Rates and Water Charges

As part of its brief, the Commission on Taxation was set the task of looking at options for financing of Local Government. In response, the Commission has made numerous recommendations for broadening the category of property coming within the ambit of commercial rates along with a recommendation to introduce domestic water charges.

Commercial Rates

The Commission's study found that the current system of raising local authority finance from commercial rates works reasonably well, despite an outdated basis for valuing commercial properties. While an update of the valuation system is currently underway, the Report calls for the speeding up of this review process including a cost-effective route of appeal.

Bed and breakfast accommodation and guesthouses are identified by the Report as ripe for commercial rates, where there are four or more bedrooms in a dwelling house provided on an ongoing basis for overnight guest accommodation. Self-catering apartments and holiday homes provided by tourism operators should also be brought within the rates base as per the Report.

Permanent structures located offshore, such as wind-farms or other offshore electricity generating stations, are also on the reports hit list for commercial rates. Third-level and professional institutions should be part-rated along with community halls where significant commercial activity takes place in such facilities. All buildings or land occupied by the State should also be brought fully within the commercial rates base in accordance with the Report.

Water Charges

The user/polluter pays principle underpins the Commissions recommendation for the introduction of domestic water charges. The report identifies a metering system as the fairest means of measuring consumption while encouraging better behaviour to benefit the environment. Such water charges should be phased in over a period of time commencing with a flat rate charge and with a transition to a billing by volume system for consumers once meters are put in place. A waiver scheme should be provided for low-income householders.