ICAI: Don't overlook needs of indigenous industry

The Institute of Chartered Accountants in Ireland (ICAI) today called on the Minister for Finance not to neglect small Irish businesses in his Budget package.

Commenting in advance of next week’s Budget Institute President, Mr John Greely said: “In our pre Budget submission, we called for an increase in the VAT registration thresholds and greater tax simplification.

"We have a concern that the current debates over property tax reliefs and the tax treatment of multinationals will dominate over the real needs of small and start-up Irish enterprises”

"In particular we wish to see VAT registration thresholds brought back to their 1972 levels in real terms - to €60,000 for service entities and €120,000 for traders. The thresholds were last revised as far back as 1993.

"Such a move would help give small businesses a competitive edge, and boost the prospects for start-up businesses which would be expected to achieve turnovers in excess of these thresholds in the short term.”

Mr Greely also pointed out that Budget measures increase annually the complexity of the tax system, and the burden of compliance which is particularly onerous on small businesses. He urged the Minister, in parallel with introducing new rules, to remove existing rules which have run their course.

“For example the special tax rules for owner managed companies which have existed for thirty years are no longer relevant in the context of our full self assessment scheme and the reduction of tax rates over the years.”