ITI in plan to support start-ups
The Irish Taxation institute (ITI) launched the proposed Supporting Ireland’s Entrepreneurs strategy yesterday.
ITI president Olivia Lynch said the proposals aim to “remove the fear of starting a business and to encourage entrepreneurial and job creating culture in Ireland”.
The key proposals include calls for:
* A new simplified starter tax pack for new businesses in Ireland with a turnover of less than €75,000 per annum.
* New tax measures to help unlock cash for small and medium enterprises by way of loan capital and equity investments.
* New rules for the business expansion scheme that would reach beyond manufacturing companies and reflect the modern economy.
* The creation of new measures to assist Irish SMEs to attract and retain key skilled workers.
The new tax pack would replace all the existing taxes on business.
Some broadening of the VAT registration thresholds will be needed to achieve this but that should be possible within EU law.
Calling for the swift action to support the sector, Ms Lynch said “measures that give real encouragement and reassurance to entrepreneurial activity have never been so critical for Ireland’s economy and for Irish people”.
It is widely accepted that “our future growth will largely come from the indigenous sector”, she said.
There are over 84,412 SMEs in Ireland, 86% of which are micro-businesses which between them employ about 620,000 people. Despite those statistics Ireland’s ratio of small businesses per 1,000 of the population “is only at 50% of the EU average”, she said.
Minister for Enterprise Batt O’Keeffe said he was encouraged by the focus on practical tax-based solutions to help the small business sector.
