Welcome to the Summer 2019 Edition of the Tax Issue.
The pace of development in international corporate tax reform is unrelenting. To date when it comes to international tax reform, Ireland has preferred to hitch its wagon to the OECD (which importantly includes the US) and let the OECD take the lead. One thing is certain, Ireland can no longer rely on the status quo. Significant changes are coming down the track.
In this issue we look at two of these proposals, the digital sales tax and the minimum effective tax rate. When you strip them both down, they amount to the same thing - larger states seeking a bigger piece of the global corporate tax pie. Ireland constantly needs to be on the top of its game to continue to attract foreign direct investment and needs to look strategically at the entire tax system to ensure we stay ahead of the curve and continue to be an attractive location to do business.
This issue also considers changes being proposed in respect of Ireland’s transfer pricing rules as well as looking at Ireland’s R&D tax credit regime and in particular how it compares with the UK’s for SMEs.
The old chestnut of “employee” versus “self-employed” continues to rear its head. Incorrectly misclassifying employees as self-employed can have significant cost implications for employers (both tax and legal). In this issue we look at a recent Tax Appeals Commissioners determination in this area. This is an area that is always the focus of Revenue attention in the event of any Revenue audit. Employers should review their practices and procedures in light of the Appeal Commissioners determination and if in doubt, seek professional assistance.
Irish society is constantly changing and developing. New family units, including non-marital relationships give rise to particular legal and tax considerations. In this issue we consider the effect of the Civil Partnership Act 2010 and the capital acquisitions tax implications. Finally, climate change is very much to the fore of the political agenda. This issue looks at the tax reliefs available for acquiring electric vehicles.
2. Payroll Taxes / Social Security
4. VAT & VRT
