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Irish Businesses Seek Tax Support To Bounce Back From COVID-19

by Jason Gorringe, Tax-News.com, London

28 May 2020


Irish business association Ibec has called for the establishment of a Commission on Taxation, as part of a package of measures to "reboot" the economy after the coronavirus pandemic.

Ibec said that the Commission should be established immediately to address both the immediate revenue challenges of the crisis and a range of other long-term issues, such as environmental taxes and the sustainability of the wider tax base.

Ibec said that the Commission should "help plan a taxation system which is fit for purpose in the post-crisis world."

Among the other tax-related measures advocated by Ibec were:

  • A combination of tax relief and other supports to incentivize greater levels of at-home and remote working;
  • A one-time extension of the small benefits exemption to benefits-in-kind to allow employers to give a voucher in 2020 or 2021 up to the value of EUR2,000, on a tax-free basis;
  • The reintroduction and expansion of the reduced nine percent VAT rate for the hospitality sector;
  • A continuation of Revenue's "warehousing" scheme for VAT and Pay As You Earn (Employer) debts associated with COVID-19 for firms which are impacted by virus containment measures or have their capacity significantly constrained by social distancing measures;
  • Revenue should allow for the optional extension of all mandatory tax reporting deadlines for three months and show flexibility to companies suffering sales losses when calculating preliminary tax, and suspend all penalties for preliminary tax filings;
  • For investments in the years between 2020, 2021, and 2022, Revenue should introduce full expensing for fixed investments for sectors worst affected by COVID-19, expand CGT entrepreneur's relief to passive investors in areas with high growth potential, and allow any investment losses under the Employment Investment Incentive scheme against capital gains tax; and
  • Revenue should ensure follow through on accelerated payment to businesses of VAT bad debt relief, film tax relief, the research and development tax credit, and other payments which impact on liquidity.

TAGS: compliance | tax | investment | business | value added tax (VAT) | tax compliance | Ireland | tax authority | small and medium-sized enterprises (SME) | transfer pricing | tax rates | tax breaks | tax reform | penalties | trade association | trade | research and development | Tax

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