‘The mindset that pro-growth tax policies are not necessary seems foolhardy’
JOE CUNNANE Managing Partner TRA Professional
TAX ISSUES The tax issues at the forefront of clients’ minds relate to the transfers of assets to the next generation in a tax-efficient manner. There is always a worry that CAT reliefs and class thresholds may be curtailed in upcoming budgets. With regard to tax compliance, VAT would seem to be the most burdensome. There is a short window between the end of a VAT period and the date for filing of returns, which adds to time pressure.
PERSONAL TAX Maximising pension contributions remains very popular with owner managers and professional clients. However, the government should look at increasing the earnings cap of €115,000, as it hasn’t been adjusted since it was introduced in 2011. Outside of this, there are very little incentives to reduce the income tax burden for clients. Schemes like EIIS have a high element of risk.
POLITICS We are not seeing any trend among business owners or wealthy clients regarding taking specific action to prepare for the possibility of Sinn Féin being in government. Businesses are not long out of Covid and are now facing increased inflation and a possible recession. There are a lot of actualities that businesses are focused on dealing with at present
CAPITAL TAXES As a firm, we believe that a reduction in the CGT and CAT rate will promote the sale or transfer of assets, as the current rates are extremely high. We believe rollover relief should be reintroduced in respect of the sale of certain assets. Many clients are slow to sell assets, particularly if they have a low base cost, due to the amount of Capital Gains Tax they will pay on the asset.
CORPORATE TAX One of the reasons why Ireland has such a high corporate tax yield is due to previous policymakers’ forward thinking in attracting multinationals and supporting indigenous industry. Having the mindset that pro-growth tax policies are not necessary seems foolhardy, as it assumes the status quo will remain.
EXIT RELIEFS A large majority of business owners are unaware of the benefits of Entrepreneur Relief. As a firm we actively look at our client portfolio and initiate the conversation regarding personal tax planning and succession planning.