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Group aims to simplify business-tax reliefs

The Minister for Finance has set up a group to look at the underlying rationale for any processes or conditions attached to certain tax reliefs.

Michael McGrath told the Irish Tax Institute’s annual dinner last night (26 February) that the move followed concerns expressed by businesses about the complexity of rules and requirements linked to some tax reliefs.

Minister McGrath said that the Taxes Administration Liaison Committee sub-group on Business Support Schemes would identify “by mid-year” any administrative changes that could feasibly be implemented within Revenue to improve access to reliefs, while still minimising risk.

“Any proposals that would require legislative change will be brought to the attention of my officials, for consideration in the normal Finance Bill process,” he told the event.

Tax on interest

The minister also said that it was now time to carry out a review of Ireland’s tax provisions or interest, which would start this year.

“As this is a complex area, it will require a significant body of work over potentially a multi-year timeframe, and I look forward to engaging with stakeholders on this matter in due course,” he stated.

Minister McGrath also told the tax professionals that work was “actively progressing” on the development of a participation exemption for foreign dividends.

He said that legislation was being developed with a view to its introduction in this autumn’s Finance Bill. He added that a feedback statement on the issue would be published within the next six weeks, after a public consultation last year.