As part of his Budget 2013 speech, Minister Noonan announced that a public consultation on the taxation of micro enterprises would be undertaken. This joint consultation between the Department of Finance and Revenue has now been launched with interested parties invited to make submissions on the possibility of introducing a simplified accounting and profit calculation regime for micro businesses.

The supporting consultation document highlights the issues which were identified in preliminary analysis carried out by the Revenue Commissioners on the feasibility of introducing a Single Business Tax (SBT). Work carried out both nationally and internationally in reducing the administrative burden for small business is also covered in the document. The potential for achieving the objectives of the original proposal - cutting compliance costs and making starting a business much less daunting – by introducing a simplified accounting and profit calculation regime for micro businesses are also examined.

Submissions on the issues around the introduction of such a regime are invited on or before 28 February 2013.

Chartered Accountants Ireland as a member of CCAB-I will be responding to this consultation.

The press release on the launch of this consultation and the supporting consultation document are published on the Department of Finance website www.finance.gov.ie.