Wednesday, November 20, 2013

Doherty welcomes maintenance of Pay and File deadlines

Fine Gael Meath East TD and member of the Oireachtas Finance Committee, Regina Doherty, has today (Wednesday) welcomed the decision by the Minister for Finance, Michael Noonan TD, not to introduce any changes to the pay and file regime for next year. 

“This is the vindication of the consultation process that has taken place between the tax industry and members of the Oireachtas in recent weeks. Through representations at the Finance Committee, members of the Irish Tax Institute made it abundantly clear that a change to the pay and file regime would have a detrimental impact on small businesses and self-assessed taxpayers. 

“The consultation process worked, and I am very pleased that the Finance Minister has taken the very real concerns on board of those who would be affected by any changes. It was made clear to TDs that small businesses have no money to pay their tax earlier, and a change to next year’s pay and file date could cause serious cash flow difficulties and potentially put businesses in jeopardy. 

“The old adage of if it’s not broke, don’t fix it springs to mind. Self-assessed tax payers account for just 4% of the total tax take. But last year a compliance rate of 98% was recorded. In my view, the negative fallout that could be brought about by a change to the system far outweighs the benefits. 

“While I note that the Minister has said that any changes would be made by way of the Finance Bill, not coming into effect until 2015, I would hope that this issue could be taken off the table for good. The concerns expressed in recent weeks will not have diminished by next year.”

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