RMcH states: the Accountancy bodies meet with The Irish Revenue Commissioners frequently, to discuss tax issues that Taxpayers may have and how the system can be administered more easily, for all parties. Below is an article from ICA, whereby the Revenue are looking at possibly further deductions allowable against rental/estate Income, we will keep you posted.
The Institute meets with the Department of Finance to discuss our response to the Phase One Interest Review Feedback Statement.
A delegation from the Institute attended a meeting with senior officials from the Department of Finance to discuss our response to the Phase One Interest Review Feedback Statement. The meeting is part of the Department’s ongoing stakeholder outreach that is growing on the back of the formation of its Business Tax Stakeholder Forum back in 2024. The meeting involved a general discussion on the feedback received placing our own comments within that wider context. The discussion that followed was constructive and it was clear that our feedback and the feedback of the other respondents has been carefully considered.
Broadly, the feedback we provided focused on our reservations with the earlier Feedback Statement, particularly the proposed application of a ‘profit motive’ test for Case I/II scenarios. We also drew out our concerns about the potential impact on the principles established in Ringmahon. The Department advised it was not their intention to change the scope of the analysis applied in Ringmahon. Rather, the Department is considering how it can broaden the analysis for deductibility accepted in Case I scenarios in a way that is appropriate for Case III/V scenarios. It is considering alternative approaches now and we will be making further recommendations on this point.
In terms of our detailed feedback to government through these public consultations, it is greatly welcomed that we are having more frequent opportunities to meet directly with officials to discuss our recommendations, or reservations as the case may be. As mentioned, we will be providing a follow-up note to the Department later this week highlighting our key recommendations as the next phase of work progresses on this key legislative project.
At this point, it seems that the Department has taken stakeholders’ views on board and will consider an approach that preserves what already functions well within the current system. It is also open to accepting proposals on what could be addressed in this year’s Finance Act and what proposals should be given further consideration for inclusion in later Finance Acts to avoid any unintended consequences.
Courtesy of Chartered Accountants Ireland