Anyone who fails to report a non-taxable benefit or reimbursed expense in real time now faces a \u20ac4,000 fine, which the institute says is disproportionate and excessive.<\/p>\n
In a pre-Budget submission it says that Enhanced Reporting Requirements introduced on January 1, 2024, have added to the amount of red tape faced by Irish business. Describing the requirement as \u201cunnecessarily onerous\u201d, the institute says that allowing reporting on a monthly basis would reduce the compliance burden while ensuring Revenue continues to receive timely data.<\/p>\n
\u201cAlthough recent amendments to the Small Benefit Exemption and updated Revenue guidance on staff meals have addressed some issues, significant practical concerns remain,\u201d the tax institute says.<\/p>\n
\u201cWe are increasingly aware of small businesses and local restaurants losing trade as employers avoid providing modest staff gestures such as retirement lunches or flowers\/chocolates for special occasions, due to concerns around ERR compliance.\u201d<\/p>\n
The small-benefit exemption has been updated to allow employers give up to two cash benefits a year, up to a value of \u20ac1,000. It also means staff meals can be provided tax-free if they are provided on-site, available to all employees and not excessive.<\/p>\n
In its pre-Budget submission, the institute points out that Ireland\u2019s marginal tax rate is 52.2pc, when PAYE, PRSI and the Universal Social Charge (USC) are taken into account.<\/p>\n
\u201cSetting the rate at 50pc would not only make Ireland more attractive for internationally mobile workers, it would also ease cost-of-living pressures and support household consumption,\u201d the submission says.<\/p>\n
\u201cTo ensure that taxpayers are not subjected to increased tax because of rising inflation, credits and bands should be automatically adjusted annually.\u201d<\/p>\n
It says the additional 3pc of USC that applies to self-employed income over \u20ac100,000 should be removed, as it does not comply with equity principles.<\/p>\n
Ireland\u2019s 33pc rate of Capital Gains Tax is among the highest in Europe, the institute also points out, and restricts external investment in Irish businesses, while also discouraging owners from scaling up or selling their firms.<\/p>\n
\u201cReducing the CGT rate to 25pc for active business assets would support innovation, enhance productivity, attract investment and may increase Exchequer returns, as evidenced by previous rate reductions,\u201d it says.<\/p>\n
Take-up of share-based remuneration schemes is low, largely due to practical limitations that undermine their feasibility, the submission argues.<\/p>\n
\u201cThe most significant of these limitations is share valuation. SMEs need certainty that the option price is not less than market value at the date of grant,\u201d it says.<\/p>\n
The institute says the upfront tax cost associated with share-based remuneration for employees should be addressed. One proposal is to reduce the 13.5pc interest rate on employer loans that are used to the purchase of shares.<\/p>\n
Alternatively, tax on the exercising of share options could be deferred until the employee can sell the shares, by which time they could fund the tax liability themselves.<\/p>\n","protected":false},"excerpt":{"rendered":"Anyone who fails to report a non-taxable benefit or reimbursed expense in real time now faces a \u20ac4,000…\n","protected":false},"author":2,"featured_media":427126,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,61,60,5243,5066],"class_list":["post-427125","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ie","tag-ireland","tag-john-burns","tag-tax"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/427125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=427125"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/427125\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/427126"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=427125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=427125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=427125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}