New accounting standards may bring tax rise

IRISH companies could end up paying more tax next year thanks to new accounting standards, a top accountant warned yesterday.

Ernst & Young partner Donal O’Sullivan said the impact of International Financial Reporting Standards (IFRS) should not be underestimated and that companies needed to be aware of the tax implications of changes to their accounting policies.

“Generally companies are taxed on their accounting profit. On the whole, this won’t change but, as a result of applying IFRS, companies’ actual accounting profits will,” said Mr O’Sullivan. “This will lead to a tax change and differences in amounts paid in tax.”