Pre-Budget 2015 perspectives

Analysis

Pre-Budget 2015 perspectives

Moving forward

On October 14 Ireland’s eighth (and last) austerity Budget since 2007 will be announced.

A well flagged ‘small cake’ is available for distribution whilst maintaining our financial discipline given the high debt burden on the State. Our team of professionals have given a lot of thought to what is required and the detail is set out in this briefing document.

In this introduction I will outline a few key takeaways.

Indigenous economy
In our view a general ‘giveaway’ is not optimum. It would be better to give a rebate that is directly linked to increased economic activity and/or a socially desirable objective. For example, incentivising consumer spending on health/ wellness and education would have a lot of positives. In addition, our analysis shows that the CGT rate is now at a level that is having an adverse impact on yield – it is time to reduce the headline rate or carve out more CGT reliefs.

The 80% windfall tax on land should be abolished. It is a barrier to residential development (a job rich sector) and in any event is not in compliance with EU law. Indeed, in general, the over-taxed entrepreneur needs to be better rewarded for the risks they take and the jobs they create.

FDI
We need to continue to enhance our tax regime to remain competitive. A focus on substance, transparency, certainty and sustainable business model optimisation is critical in this regard.

Pre-Budget 2015 perspectives
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