The EU report shows that Ireland is not a high tax country with total tax receipts as a percentage of GDP the lowest in the EU and the Effective Marginal Tax Rates lowest 1/3 in the EU.
Even with a more than double tax subsidy for industry spending on R&D in Ireland, R&D spending is higher in the UK, caused mainly by increased spending in universities in the UK.
• In the EU Ireland scores second for the number of hours needed to comply with taxes per year, but scores badly on the length of time it takes to obtain a VAT refund at 15 weeks. The UK only takes 10 weeks.
• Irish Environmental taxes are in the bottom five in the EU but also boast the lowest tax subsidy for company cars in the EU
• Ireland is the second lowest in the EU for the level of tax wedge for a single person earning the average wage and are lowest in the EU for tax wedge for low income earners.
However, Ireland is ranked second from bottom for Inactivity trap for low income earners.
A survey and report on Tax Policies in the European Union, published this week by the EU Commission, identifies areas which are in need of improvement and in need of Government policy review within Ireland’s tax system according to the Association of Chartered Certified Accountants (ACCA).
Commenting, Liz Hughes, Head of ACCA Ireland said, 'The report provides a very useful starting point for discussion on refinement of Ireland’s tax system and while it points out many areas where Ireland scores well, it also identifies where the Government needs to work on.
Full press release
© ACCA - Association of Chartered Certified Accountants
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