Taxing times for businesses

IN ALL my 45 years as a public representative, I have never witnessed until now the mental strain and anxiety amongst the business community as they struggle financially to meet rents, rates, leases and income tax. This mental strain has sent many of them to an early grave.

To ease this mental pain and suffering there is need for leniency, compromise and flexibility. If fresh legislation is needed so be it. I am directing my appeal both to Government and the Revenue Commissioners, to be more lenient in their approach and demands on businesses, to meet financial obligations.

As I said many times in the past, the present system of imposing rates on business properties is undemocratic, outdated and may be unconstitutional. Rating on business properties should be revised and a waiver system introduced based on ability to pay. Business properties are rated on an archaic system, rather than no ability to pay. That system must be changed. with a waiver system, Local Authorities would be getting something but closed and de-rated properties are of no benefit to anyone.

In the current economic climate many businesses have closed with others facing repossession. The new Financial Regulator is helping to sort out problems with repossessions, which I welcome.

To help the commercial sector, the Commission on Taxation has argued that State properties currently exempted from commercial rates — such as government offices, Defence Forces, Garda properties, prisons, HSE administrative offices and the constituency offices of parliamentarians should be brought into the rates system.The effect of these proposals to broaden commercial rates base was estimated, by the Commission of Taxation, to be worth between €77m-€87m in income to local authorities per year. It is estimated that €50m of the €77m-€87m relates to state properties, that would be liable for commercial rates.

The following two points are of considerable importance: the decrease of local authority rate charges for 2012 by 10% and a compensation package to be drawn up by local councils for businesses who have suffered a loss. In the current economic climate, compromise and change must be considered. I, therefore, renew my appeal to the DOE, Department of Finance and Revenue Commissioners to help businesses meet financial obligations, by way of rates and income tax and to legislate accordingly, if so needed.

Cllr Noel Collins

Midleton

Co Cork