The Tax Strategy Group recently published fourteen papers on various options for tax policy changes for Budget 2022. The papers include proposals for remote working, transborder workers’ relief, international and EU tax developments, and climate action, as well as papers on income tax, corporation tax and VAT policy and PRSI rate setting options.
The Tax Strategy Group comprises senior officials from the Department of Finance, Public Expenditure and Reform, Department of the Taoiseach, Revenue, Department of Enterprise, Trade and Employment, Department of Employment Affairs and Social Protection, Office of the Attorney General, and the Department of Climate Action, Communications Networks and Transport. The group is not a decision-making body, and the papers represent a list of options and issues to be considered in the budgetary process.
Response to Covid-19 (TSG 21/01) provides an overview of the Government’s response to the epidemic including the supports put in place such as the EWSS, CRSS and other relevant tax measures.
Income Tax Paper (Incorporating Help to Buy Scheme) (TSG 21/02) includes a summary of tax yields, information on the distribution and burden of income tax and USC, international comparisons and policy considerations for reform. Other items discussed include Help to Buy, Flat Rate Expenses and Pensions.
Review of Tax Arrangement regarding e-working (TSG 21/03) sets out the current tax treatment of remote working, international comparisons, and options for consideration.
Trans-borders Workers Relief (TSG 21/04) summarised the current situation regarding the tax treatment of people working across state lines, and the complexities of the issues which have arisen during the pandemic.
Corporation Tax (TSG 21/05) examines a range of topics such as corporation tax trends, implementation of EU Anti Avoidance directives, the Tax Appeals Commission and the proposed tax credit for the digital gaming sector.
International and EU Tax Developments (TSG 21/06) discusses tax developments at both an EU and international level, including Ireland’s position on recent developments.
PRSI (TSG 21/07) examines issues including the Social Insurance Fund, contribution rates and benefits.
Social Protection Package – Budget 2022 Issues (TSG 21/08) sets out the role of social transfers and outlined progress towards the national social target for poverty reduction. The paper presents the overall DSP expenditure under its various programmes and discusses Budget 2022 in the context of the expenditure ceiling and the Covid-19 pandemic.
Climate Action and Tax (TSG 21/09) looks at how the tax system can be used to help meet Ireland's ambitious climate change goals of reducing emissions, increasing energy efficiency and developing less environmentally harmful policies. It puts forward options in respect of carbon, fuel related and motor taxes.
Value Added Tax (TSG 21/10) reviews VAT rates and structures, provides options for change and looks at VAT developments at EU and domestic level.
General Excise (TSG 21/11) looks at non-environmental excise duties. It outlines the rates that have been applied and the revenue yielded from excise duties on tobacco products and alcohol products in recent years. The paper also discusses public health policies and Covid-19’s impact on these sectors.
Brexit Readiness – Taxation and Customs Issues (TSG 21/12) examines the implications of the decision of the UK to leave the EU on the administration of taxation in Ireland. Items for discussion included the EU and Ireland’s response to recent developments, Budget measures, ongoing issues and duty free taxes.
Capital & Savings Taxes (TSG 21/13) covers capital gains tax, capital acquisitions tax, DIRT and life assurance exit tax and examines rates, yields and exemptions associated with these taxes. The paper sets out the current position on each and examines potential options for change in the context of Budget 2022.
Stamp Duty (TSG 21/14) examines the stamp duty rates for residential and non-residential property in Ireland, international comparisons and the impact of Covid-19. It also discusses REIT’s and farming reliefs and provides an overview of other stamp duty items such as the bank levy and the levy on shares.
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