Anglo-Irish Chamber calls for new body to simplify tax code
The Anglo-Irish Chamber of Commerce has called for the creation of a tax reform office to recommend and advise the government on how to simplify what it describes as “the onerous nature of the Irish tax system for business”. .
The business advocacy group has called for a new agency modeled on the UK’s Office of Tax Simplification, which provides independent advice to the UK government on simplifying the tax system.
In a submission to the Tax and Social Care Commission, the chamber said a new body was needed “to mitigate unnecessary delays and costs imposed on businesses by the layering of additional rules in recent years”.
He said that introducing new obligations such as the Anti-Tax Avoidance Directive and OECD Profit Shifting (Beps) measures without reforming the wider tax system leads to unnecessary confusion and contradictions between the rules. tax.
The chamber also called on the committee to consider reforms to the personal tax system, including changes to the marginal income tax rate, which comes into effect at relatively low income levels, and the introduction of a more robust R&D tax credit to ensure that Ireland remains an attractive destination. meeting place for talents and entrepreneurs.
Taxpayers here pay personal tax at marginal rates of 48.5% on salaries over €36,800 and 52% on salaries over €70,044, which are among the highest rates in the world.
“The tax system continues to be a crucial factor in determining Ireland’s future competitiveness,” said Paul Lynam, the chamber’s deputy chief executive.
“Whether it’s helping to attract top international talent to our island or enabling local businesses to grow, it can secure the recovery that has set in,” he said.
“But with global tax changes impacting our FDI model, it is essential that we strengthen Ireland’s global offering. Simplifying the complex tax system for businesses and reducing the tax burden on employees are two key tools to securing Ireland’s position as a location of choice for investment,” he said,
“Today, too many indigenous businesses find themselves constrained by overly complex tax rules that need urgent reform,” he said.
The tax committee, the body set up to examine the various ways in which the state can finance itself in the future, received more than 200 submissions as part of the public procurement process ahead of its deliberations.