Global tax rules are transforming an this will have a major impact on our current and future foreign direct investment model. Now we must provide certainty and innovate with improvements to our current foreign direct investment tax model and a rapid release of supports for indigenous business. Ireland is an easy place to start a business, but a difficult one in which to grow one.
The next government must:
1. Convene a new Commission on Taxation to ensure that our tax system is sustainable. This Commission should bring coherence and underpin competitiveness of the taxation corporations, property and the environment whilst incentivising indigenous business and ensuring fairness of the personal tax regime;
2. Support indigenous business through meaningful reform of Capital Gains Tax (CGT) for entrepreneurs and the Employment Incentive and Investment Scheme (EIIS) and ensuring that business can take full advantage of the benefits of employee share options;
3. Respond to the challenges of global tax reform by providing certainty on the 12.5% corporation tax rate, improving innovation supports and introducing accelerated capital allowances for investments in advanced manufacturing technology;
4. Ringfence overruns in corporation tax revenues for spending on non-tax elements of the business model such as infrastructure, innovation, education, and quality of life.