Business Plus

‘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.

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