IBEC says Government must compete strongly with UK

IBEC is warning the Government that Ireland risks being outmanoeuvred in business by the UK if our tax system is not reformed.

The organisation said the coalition needed to "end discrimination against the self-employed, introduce meaningful capital gains tax relief for entrepreneurs and enhance investment schemes".

As IBEC launches its pre-Budget submission, CEO Danny McCoy said we needed to compete with the UK on a larger scale.

"(UK Chancellor) George Osborne's recent budget puts a challenge up to the Irish Minister for Finance (Michael Noonan) to compete," he said.

"We need to compete on the corporate tax front, but also for entrepreneurs and for talent. So how we handle the personal taxation system is crucial, but also the capital gains tax for those entrepreneurs trying to reinvest back into businesses."

IBEC also said the Government needed to ask the EU for more flexibility on capital expenditure.