New thinking needed to up tax compliance level

It’s not just politicians, business groups, unions and individual taxpayers who lobby government for tax changes. Government agencies and semi-state bodies also have a tilt at the Minister for Finance in the run-up to a Budget.

Most organisations publish what they’ve lobbied for. But it was RTÉ which published the news, a few days ago, that the IDA had sought tax exemptions for Airbnb lettings, car sharing company Uber, music streaming and firms which provide non-bank finance.

The IDA idea of exempting income from the so-called sharing economy isn’t new. A few years ago, the then UK Chancellor George Osborne introduced a £1,000 exemption for income from letting accommodation along with another £1,000 exemption for small services.