Overly complex tax system hampering our potential for real growth.
In its pre-budget submission issued today, (Wednesday 20th July), ISME, the Irish Small & Medium Enterprises Association, called on the Government to ‘Think Small First’ in Budget 2017, by putting the emphasis on Small and Medium enterprises, their owners and their employees. The Association called for a total end to tax discrimination against the self-employed and a reduction in red tape barriers around small business R & D, share options for employees and Capital Gains Tax on entrepreneurs.
Speaking at the launch of the submission ISME Chief Executive, Mark Fielding said “Ireland needs to grow its own entrepreneurs. We need to use our tax system more effectively to draw on the increasingly large pool of Irish-born managers, skilled professionals, and entrepreneurs working both at home and overseas. When compared to other jurisdictions, the tax regime in Ireland is extremely uncompetitive. It is now very difficult to attract entrepreneurs to establish and grow a business in Ireland”.
Current schemes are too complex and expensive for SMEs. There is a competitive disadvantage for entrepreneurs versus PLC’s when hiring and rewarding key staff, when introducing R & D and when selling a business, all acting as a further disincentive to entrepreneurship. The tax code has been written with large multinationals in mind. Right across the tax system the SME is discriminated against, whether it’s directly through tax allowances or through the in-built difficulties arising from sections which have been written to suit large business.It is time for Government to ‘Think Small First’ when preparing this budget and begin to look after and nurture the seed-bed of business; the micro and SME sectors.
“The ISME pre-budget submission focuses on encouraging SME business to start-up and grow, incentivising enterprise, which will stimulate job creation. The advice to government is to nurture small business through the tax system, which will have positive payback through jobs and tax take”, concluded Fielding.