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WHPR
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The Budget provision to remove the remittance basis of taxation from the beginning of next year could have serious consequences for Ireland as a location of choice for high value-added activities, the National Tax Partner of Deloitte, Mr. Pat Cullen warned today (7 December 2005).

“This may have been a well-intentioned move by the Minister, but it could backfire spectacularly if the high-end executives who have been attracted to Ireland and who avail of this tax break decide to leave. They may even decide to relocate to other countries, a move which would have serious consequences for future job creation here,” he said.

Turning to the Minister’s decision to terminate a wide range of property-based tax incentive schemes, Mr. Cullen said that the new income cap of €250,000 being introduced would hinder those investors trying to avail of the transitional arrangements. “While many of these measures were well-signposted, the income cap will lead to confusion among investors hoping to benefit from the transitional arrangements.”

In relation to the new pensions’ measures, Mr. Cullen called on the Government to ensure that the new €5 million maximum pension fund allowance for individuals be index-linked each year. “The new cap, on the face of it, looks fair. However, too many times in the past we’ve seen caps introduced which aren’t index-linked and quickly decline in real value terms.”

Ends.