Colm Brownthe newly elected president of the Irish Tax Institutecalled for new measures in the 2023 budget to support businesses in the repayment of warehousing tax debt.
Addressing the Institute’s AGM, Browne said that Revenue must take a pragmatic approach to businesses as they start reimbursing their storage taxes from 1 January 2023.
Browne said: “Many small national businesses are under significant pressure. Many are struggling with skyrocketing input costs, staff shortages and some continue to struggle in the supply chain.
“Over the coming months there will be intensive revenue engagement with taxpayers and it is essential that we can put in place appropriate and realistic staged payment arrangements that take into account not only the impacts of the pandemic, but also the difficulties that many SMEs face in a very difficult economic environment.
“The next budget must include measures to support these businesses, but revenues must also show understanding.”
Referring to warnings about Ireland’s overreliance on the multinational sector for income tax and corporation tax revenue, Browne said the most sustainable strategy to reduce this risk of concentration is to broaden the economic base by creating an innovative, productive and competitive indigenous sector.
“Effective tax measures have an important role to play in this endeavour. And the fact is that, despite some changes in recent years, existing measures like ISIS, KEEP and the R&D tax credit are far from optimal.
The Institute has made proposals to the government on how these measures could be reformed to make them more accessible to SMEs, and hopes they will be reflected in the measures in the 2023 budget.
“Although FDI will always play a central role in our economic model, it will be crucial for the resilience of our economy to foster a strong, innovative, clean and green local SME sector. I hope that the Commission’s report on taxation will contain recommendations on tax measures that could help build this resilience in the future,” he added.
Browne is a tax director at PwC where he trained as an accountant and tax adviser, returning home to the Midwest to work with BDO and later OBI, a Limerick firm where he was a tax partner.
In 2018 he returned to PwC as Tax Manager in their Limerick office. He was elected to the Institute’s Board in 2014 and is its 47th President.