ICAI Publishes Pre-Finance Bill Submission

by Carla Johnson, Investors Offshore.com, London

18 January 2008

The Institute of Chartered Accountants in Ireland (ICAI) has focussed on proposals to enhance Ireland’s reputation as a good place to invest in its pre-Finance Bill submission to the Minister for Finance, Brian Cowen.

“Some of the indicators for our economy may be less positive at present than in recent years.We hope that this should not deflect the Minister from considering innovations in our tax system which will promote investment and further growth, as tax has a pivotal role in influencing business behaviour” stated ICAI Director of Taxation, Brian Keegan.

“Ireland competes for inward investment on two levels – attracting new investment certainly, but also in retaining the business we already have. Our focus is on improving the business tax environment, not by seeking tax cuts, but by streamlining and simplifying existing arrangements to bring us into line with best international practice,” Keegan added.

Specific ICAI proposals include:

• Simplifying the tax rules which govern payments by foreign companies into Ireland, which will assist the expansion of indigenous industry as well as consolidating multinational presence in Ireland;
• Improving the tax status of income derived from patents, and treating the purchase of patents and know-how on the same footing as the purchase of any other business asset – measures of critical importance in developing the knowledge economy; and
• Assisting Irish owner managed business by permitting investment in factories and equipment to reduce tax surcharges.

The submission to the Minister has been made as part of CCAB-I, the umbrella body for the main accounting bodies.

With a combined membership of over 20,000 accountants directly involved in all aspects of tax law, CCAB-I is in a unique position to bring informed comment and proposals to the Minister.

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