Category Taxation in Ireland

Ireland Backs Away from EU Digital Tax

May 2, 2018 Taxation in Ireland

Digital tax in the EUDUBLIN – Ireland stands to lose out on tax revenues if the EU goes ahead with a proposed EU-wide digital tax.

Irish authorities have heard evidence indicating that a newly proposed pan-EU tax on digital revenues could have a significantly negative impact on tax revenues in the country.

The new tax would see large multinational online businesses charged a 3 percent tax on revenues earned from users in the EU.

The tax would be paid to the government of the country in which the users live.

Currently, large online businesses do not pay taxes based on the location of their users, but, instead, on the location of the registered offices.

The current system has driven businesses to register in low-tax areas such as Ireland, despite making the bulk of their profit in other countries.

The government...

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Irish Tax Will Lead To Smuggling

September 4, 2017 Taxation in Ireland

Soda TaxDUBLIN – Ireland would be opening the door to smuggling if it introduces a tax on soda.

Late last week the Irish Beverage Council, an industry advocacy group operating in Ireland, states that tax authorities would see a significant loss of revenues if the government enacted a tax on sugary beverages next year, as is currently planned.

The group claimed that if the tax on sugary-sweetened beverages is enacted, then consumers will begin sourcing a portion of their drinks from Northern Ireland, which will foster the creation of a grey-market for such drinks.

It is estimated that the tax would result in an 11 percent loss in sales due to smuggling.

The loss in sales would equate to an EUR 30 million loss in retailer sales, and a proportionate loss in tax revenues.

In comparison, the tax itse...

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High Personal Taxes Slow Down Irish Entrepreneurship

April 4, 2017 Taxation in Ireland

Personal Taxes in IrelandHigh Personal DUBLIN – Despite having a competitive environment for corporate taxes, Ireland is slowing down business growth and entrepreneurship with its high personal taxes.

New information published by the consultancy group Ernst and Young has shown that entrepreneur in Ireland are dissatisfied with the rates of personal taxes in the country, claiming that the punitive rates are a hindrance to business activity.

The release by EY claimed that 72 percent of all entrepreneurs in Ireland see the country’s high level of personal taxes as a barrier to business growth.

Currently, individuals who earn in excess of EUR 32 800 in Ireland are required to pay a marginal tax rate of 40 percent, while in the UK the threshold for the highest tax rate is set at the equivalent of more than EUR 50 0...

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Taxes Reach Highest Point Ever in Ireland

January 5, 2017 Taxation in Ireland

Tax collections in IrelandDUBLIN – An unprecedented level of tax collection in Ireland are paving the way for the government to enact tax cuts and spending increases.

The latest Exchequer Returns of Ireland released on January 4th have shown that in 2016 Irish tax authorities collected more tax revenues than in any other year on record.

The total of taxes collected over the course of the year reached a total of EUR 47.86 billion, an increase of 5 percent compared to the total collected in 2015, when collections were EUR 2.3 billion lower.

Along with being the highest collected amount, the revenue total was also EUR 639 higher than forecast by the Exchequer, an amount approximately equivalent to 1.4 percent above forecast.

The Finance Minister Michael Noonan said that the increased tax revenue levels allowed the...

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Wealth Tax Evaluated for Ireland

November 25, 2016 Taxation in Ireland

Tax on Wealth in IrelandDUBLIN – A wealth tax in Ireland, as applied elsewhere in the EU, could raise as little as EUR 22 million per year, or as much as EUR 1.3 billion per year.

In a report released earlier this week researchers from the Economic and Social Research Institute of Ireland attempted to ascertain the potential revenues which may be raised from the imposition of a tax on household wealth in the country.

The researchers did not propose any particular set of parameters for the wealth tax, and, instead, opted to examine the impact that already implemented taxes from around Europe would have in Ireland.

It was found that if the French wealth tax system was transferred to Ireland, it would only result in tax collections of EUR 22 million per year, as it is only applied in cases where an individual has as...

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