Contact: Brian Bell
WHPR
+353 (0) 87 2436130

Contact: Pat Cullen
Deloitte.
National Taxation Partner
+353 1 417 2200

Contact: Andrew McLindon
Wilson Hartnell Public Relations
+353-1-669 00 30

Senior executives overwhelmingly believe that the present tax collection and payment system is too costly, complex and cumbersome, particularly for small and medium sized businesses. At the Deloitte Finance Bill Breakfast today, at which over 250 senior executives were present, over 90 percent of attendees believed that the present system of making up to five tax payments in a calendar year should be restricted to the larger tax payers.

Commenting at the Breakfast meeting, Pat Cullen, National Tax Partner with Deloitte, said that the Revenue should be able to estimate the threshold of profits or income that is required to generate 80 to 85 percent of the tax from the Corporate and Personal Tax Sectors.  This is likely to involve less than 20 percent of tax payers.  By applying the multiplicity of tax payments to only the larger tax payers, the tax system could probably be simplified for more than 80 percent of tax payers without having a significant impact on the timing of tax receipts.

In relation to Capital Gains Tax, 89 percent of the senior executives believed that the requirement to pay Capital Gains Tax in more than one instalment should be confined to those with a liability of more than EUR100,000. Pat Cullen went on to comment that the requirement to pay Capital Gains Tax on 31st October and 31st January has imposed a significant burden and cost on many tax payers who often have very small liabilities. The benefit to the Exchequer must be questionable by comparison with the costs of compliance.

The survey also revealed that more than 60 percent of the senior executives were aware of the Compliance Statement required under IAASA, but were not really familiar with its requirements even though it may become a requirement for larger businesses for accounting periods commencing on or after 1st July this year. 

Commenting on this, Pat Cullen said, “This Statement, which requires directors to confirm that they have in place systems and are actively reviewing them to ensure compliance with Company, Tax and other laws is a significant issue for business. However, little has been done to alert directors to the requirements. He added that in response to client needs in this area, Deloitte have launched a new risk management service line focused on assisting clients comply with the new requirements.

ENDS

About Deloitte
Deloitte, one of Ireland’s leading professional services firms, provides audit, tax, consulting and financial advisory services through nearly 800 people in Dublin, Cork and Limerick. Known as an employer of choice for its innovative human resources programmes, the firm is dedicated to helping its clients and its people excel. “Deloitte” refers to Deloitte & Touche and any associated partnerships and companies established under the laws of Ireland.  Deloitte is the Irish member firm of Deloitte Touche Tohmatsu.
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