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

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UK releases new Brexit proposal: Ireland and EU react

In early October, the UK Prime Minister Boris Johnson delivered an alternative Brexit proposal to the EU. In a letter to European Commission President Jean-Claude Juncker, “A fair and reasonable compromise: UK proposals for a new protocol on Ireland/Northern Ireland”, the UK Prime Minister explains his proposal to replace the Irish backstop with a complex system of customs, regulatory and border checks mainly impacting Northern Ireland.

In summary, the plan provides for the following;

  • Ireland and Northern Ireland will be in a new all-island regulatory free zone, with no regulatory checks between the two areas.
  • Northern Ireland will remain in the EU single market until the end of a proposed transition period but will leave the EU customs union alongside the rest of the UK.
  • Four years after the transition period, the Northern Irish Assembly will be free to choose whether to remain aligned to the EU or to UK rules.
  • The Prime Minister has also committed to a “New Deal for Northern Ireland” development package, which focuses on economic growth and cross-border collaboration.

In response to the proposal, Taoiseach Leo Varadkar released a statement saying they do not fully meet the agreed objectives of the Irish backstop. The Taoiseach also reassured the EU of Ireland’s commitment to protecting the EU single market and customs union, as well as protecting the Good Friday agreement and avoiding a hard border.