There has been widespread media coverage of aspects of the report of the Commission on Taxation. It would seem that it comprises a substantial piece of research and analysis, reportedly running to some 700 pages with 250 recommendations. That being the case, it becomes even more important that the recommendations are considered as a whole package, without undue focus on any one particular aspect.
The terms of reference for the Commission were to consider the structure of the taxation system while preserving Government income, incentivising retirement, and analysing the various incentives and reliefs. It was also to pay particular attention to carbon taxes and local government funding, but in every respect without prejudice to the 12.5% Corporation Tax rate. This was a tall order, but the terms of reference were framed in much gentler economic times (late 2007 to early 2008).
The Commission apparently received additional riding instructions at the start of this year. The framework document which was used by the Social Partners in discussions on an economic renewal plan made specific reference to the work of the Commission. It noted that "the Government is asking the Commission on Taxation to identify appropriate options to raise tax revenue".
The establishment in Ireland of a Tax Commission is not unique. A number of countries have recently carried out, or are in the process of carrying out, major reviews of their tax systems. In Canada the Advisory Panel on Canada's System of International Tax presented its final report in December 2008. In Australia the Henry review was established in May 2008 and is due to report later this year. Its terms of reference are to examine the Australian tax system and "make recommendations to position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century."
Assuming that the media reports are correct, perhaps 20 of the 250 recommendations are now in the public domain. One of the criticisms relating to the first Commission on Taxation report was that its recommendations were implemented piecemeal, arguably with priority given to those recommendations which raised additional revenue like the benefit in kind rules. In fact, a key recommendation of its 1985 report - that Revenue penalties should be subject to appeal - was only implemented last year.
It would be expected that, insofar as the Commission proposals can work successfully, they must be analysed and then perhaps applied together as part of an integrated package.