Significant changes have been introduced by the Finance Act 2011 and the Finance (No. 2) Act 2011.

These changes, coupled with the significant changes expected based on the Government’s Four Year Plan, mean that Tax Planning has become more important than ever. At Cahill Taxation Services, we can assist you in organising your business as tax efficiently as possible.  We can also provide invaluable advice on wealth planning, in order to prevent avoidable inheritance tax liabilities in the future. We have set out in our Tax Update a summary of the provisions set out in Finance Act 2011 and the Finance (No. 2) Act 2011, together with a short summary of the tax planning options available to individuals.

Please click here to download a copy of our Tax Update Newsletter for June 2011.

Finance Act 2010 made significant changes in the area of Capital Aqusitions Tax. The changes are designed to modernise the administration of Capital Acquisitions Tax to bring the tax in line with other taxes such as income tax. CTS recently made a presentation on the changes to the Clare Law Association.

Please click here to download a copy of the slides.

Introduction

The Minister for Finance delivered Budget 2010 on 9 December 2009.  Anticipated as the most difficult Budget in the history of the State the emphasis in the Budget was on expenditure cuts.  The Budget makes provision for a cut in public spending in the order of €4bn in 2010 with a further €2bn "pencilled in" for 2011.  The impact of the expenditure cuts will be worst felt by public sector employees and social welfare recipients.

With the emphasis in the Budget on expenditure cuts, the Budget is light on tax changes.  The Minister has not sought to raise income taxes in the Budget which is to be welcomed.  Indeed, he has acknowledged that "we have reached the limit" in terms of tax rate increases although he has flagged the reform of our income tax system in 2011.  As expected, the Minister has made further restrictions on the use of tax incentives by high earners and he also announced the introduction of a domicile levy for wealthy Irish citizens living abroad. The Minister has also flagged future tax changes, potentially to be introduced in the Finance Bill.

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Overview

The much awaited Commission on Taxation Report 2009 was published on 7 September 2009.  The Report is a comprehensive document, stretching to some 550 pages and includes over 240 recommendations.  The Report is likely to have a considerable impact on Irish tax policy over the next few years.  The aim of the Commission was not to advocate an overall increase in the levels of taxation, but rather a broadening of the tax base, with emphasis on reducing the level of tax on employment and enterprise.

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