Irish finance minister under fire over tax plans

Irish finance minister under fire over tax plans

Irish finance minister Charles McCreevy, an accountant, is under fire from his former colleagues in the profession over his 'big bang' plans to reorganise the tax year in line with the calendar year.

He is proposing that the switch from a tax year starting in April, which has huge implications for the profession’s workload in filing returns, be implemented in full from 1 January 2002. Compounding the concerns is the fact this is the date when the Irish currency is be replaced by the euro.

Now the Irish ICA – of which the minister is a member – has asked him to reconsider the way in which he plans to introduce the change. As a minimum, it wants him to phase in the new filing times and payment dates. Under the new plan, preliminary tax will be paid on 30 September in the year of assessment, a slightly longer deadline than at present.

But returns will have to be filed by 30 June the following year ? a significant shortening of the nine month period allowed under current rules.

McCreevy told parliament that the change would put tax collection on a ‘more rational and simplified basis’, and that combining this change with the euro changeover would allow IT system adjustments to be made in one go.

The ICAI’s tax spokesman, Kieran Ryan, while acknowledging the planned change follows the practice of many developed countries, argued for a gradual phasing in of the new regime.

‘The unavailability of adequate staff is stretching many practices ability to meet existing deadlines,’ he warned. ‘The prospect of having to do the same work in a shorter time frame, with a tightening labour market, is a serious concern.’

www.icai.ie

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource