Executives reveal frustration at tax system
Most senior executives believe the present tax collection and payment system is too costly, complex and cumbersome, particularly for small and medium sized businesses, a survey of executives has revealed.
At the Deloitte Finance Bill Breakfast today, at which over 250 senior executives were present, over 90% of attendees believed 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 the Revenue should be able to estimate the threshold of profits or income that is required to generate 80 to 85% of the tax from the corporate and personal tax sectors.
This is likely to involve less than 20% of tax payers. By applying the multiplicity of tax payments to only the larger tax payers, he said the tax system could probably be simplified for more than 80% of tax payers without having a significant impact on the timing of tax receipts.
In relation to Capital Gains Tax, 89% of the senior executives believed the requirement to pay Capital Gains Tax in more than one instalment should be confined to those with a liability of more than €100,000.
The survey also revealed more than 60% of 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 July this year.
Mr 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."
