The Small Firms Association (SFA) today (16 July 2015) participated in the opening day of the National Economic Dialogue, ensuring that the voice of small business is heard in the debate on Ireland’s economic future...
SFA Chairman, AJ Noonan, said “Tax reform is key to unlocking job creation, investment and growth. The SFA has long advocated reform of the Irish tax system to make it more attractive and rewarding to establish and operate a business in Ireland.”
“The first step is to end the discriminatory treatment of proprietary directors and the self-employed in the tax system. At the moment they are subject to a USC surcharge and don’t receive any PAYE tax credit, even where they pay tax on a PAYE basis. The upshot is that they pay more tax than they would as an employee on the same salary – so they are being punished for taking the risk of starting their own business and creating jobs,” AJ Noonan continued.
The SFA voiced these concerns at the National Economic Dialogue and presented them in a written submission to the Department of Finance’s Tax and Entrepreneurship Review earlier this week.
AJ Noonan continued: “Capital Gains Tax is another area that must be addressed by the Government in Budget 2016, in order to unlock investment in Ireland. We need a no-nonsense 20% CGT rate, with an attractive, functioning Entrepreneur’s Relief, similar to the 10% rate for entrepreneurs in the UK.
“Competitiveness is essential. These changes on the tax side must be coupled with targeted investment in infrastructure and broadband to ensure that the whole country can benefit from the improving economic conditions.”
“Entrepreneurs and the small business sector, given the right economic conditions, will generate the growth needed to create jobs, overcome our debt burden and deliver the prosperity and quality of life that this country can legitimately aspire to. Small business can lead the way in helping Ireland to continue to recover faster and stronger than others – but the tax environment must be brought into line with the Government’s rhetoric on entrepreneurship. This is the message that I delivered to the Government and other stakeholders at today’s National Economic Dialogue and I urge the Taoiseach and the Minister of Finance to make the necessary changes in Budget 2016,” concluded AJ Noonan.
Article Published: 16/07/2015