Budget 2019 needs to Brexit proof Ireland to protect competitive climate, attract international talent and large-scale FDI and support Irish businesses and entrepreneurs to grow and scale – Deloitte
Report cautions against Ireland adopting more onerous Controlled Foreign Company rules than required under EU Anti-Tax Avoidance Directive
21 September 2018 Budget 2019 should be used to Brexit proof Ireland, improve Ireland’s competitive climate to attract international talent and large-scale FDI, as well as helping Irish businesses and entrepreneurs to grow and scale, according to the Deloitte Pre-budget report, published today.
Lorraine Griffin, Head of Tax, Deloitte, commented: “Despite its current growth, the Irish economy is being tested with social and economic challenges domestically and the landscape is challenging and changing. The economy is also contending with tough Brexit negotiations and a changing international tax environment expedited by US tax reform, EU tax policy changes and OECD tax developments.
“In our report we focus on a number of suggested measures including how to tackle infrastructure and housing supply, how to support indigenous businesses, entrepreneurs and serial entrepreneurship in Ireland, in addition to responding appropriately to international tax developments and reform, such as the introduction of the Controlled Foreign Company (CFC) rules – a requirement under the EU Anti-Tax Avoidance Directive (ATAD).”
The Deloitte report in summary:
Ireland Inc and Foreign Direct Investment
Tax and entrepreneurship
Individuals
Real Estate
Global mobility, immigration and employment
On the measures likely to impact individuals, Griffin commented: “There is a need to consider the impact the tax regime for individuals is having on our entrepreneurial culture and on competitiveness; however there is also a real need to incentivise people back into the workplace and support people and landlords alike in the housing market.
“It would be a positive move if the standard income tax rate band was increased. This would be welcomed at a domestic level, and it would further enhance our international competiveness in attracting business travellers to Ireland.”
“There is a real opportunity for Ireland to position itself for the future and for future economic growth and stability. With that in mind, Ireland 2040 was a welcome announcement but we need to ensure there is momentum now and appetite to accelerate the development of infrastructure. Unless the current situation in relation to housing and rented residential accommodation in particular is addressed, it will impact on Ireland’s economy and our ability to attract investment and ensure new jobs can be created or retained here.”
The report also cautions against Ireland adopting more onerous rules than the EU Anti Tax Avoidance Directive (ATAD) requires. To do so would make Ireland less competitive than other EU countries which have implemented the rules contained in the ATAD as stated.
“Ireland has always competed internationally for investment and should continue to do so in an increasingly competitive environment. Ireland should play fair but play to win. On adoption of the new ATAD measures, Ireland needs to implement these rules in the context of competitiveness,” concluded Griffin.
In this era of scientific breakthroughs, particularly with the emergence of artificial intelligence, one would…
Nine in 10 (90%) Irish executives anticipate a medium to high impact to their organisation’s…
Sustainability has become a central focus in many workplaces, especially environmental sustainability, with businesses striving…
Longford County Council has announced the launch of ‘Perfectly Located Longford’, a new investment brochure…
The annual Guaranteed Irish Tech Forum took place with a panel of four female leaders…
To mark International Girls in ICT Day, Microsoft is hosting a virtual Dream Space event…
Irish Tech News are Ireland’s No. 1 Online Tech Publication and often Ireland’s No.1 Tech Podcast too.
You can find hundreds of fantastic previous episodes and subscribe using whatever platform you like via our Anchor.fm page here: https://anchor.fm/irish-tech-news
If you’d like to be featured in an upcoming Podcast email us at Simon@IrishTechNews.ie now to discuss.
Irish Tech News have a range of services available to help promote your business. Why not drop us a line at Info@IrishTechNews.ie now to find out more about how we can help you reach our audience.
You can also find and follow us on Twitter, LinkedIn, Facebook, Instagram, TikTok and Snapchat.