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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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IMF Article IV report published

The Executive Body of the International Monetary Fund (IMF) published its annual review of the Irish economy, the Article IV report. The Article IV report is a strategic medium-term review of the Irish economy and Government policies. The report sets out the views of IMF staff on the current position of the economy and its future prospects and provides recommendations.

The report notes that the Irish economy was on a favourable path of high growth and declining vulnerabilities in the run-up to the pandemic and that the swift and comprehensive fiscal policy response has made good use of the policy space built before the pandemic. In relation to the pandemic, the report details that fiscal policy should continue to be supportive in the near term to avoid cliff-edge effects, especially considering remaining vulnerabilities. After recovery, the report calls for the tax base to be broadened to help finance productivity, enhancing investment in human and physical capital, and to resume the reduction in public debt in relation to gross national income.

The report details that despite the comprehensive response to Brexit, uncertainties around non-tariff trade impediments remain a risk given Ireland’s strong links with the UK. The report also considers the changes in international taxation to have had an effect on both the Irish economy and public finances and calls on the Ireland to continue to build on its strong non-tax comparative advantages. These include a qualified labour force, strong and stable legal and policy environment, and a favourable business climate.

The Minister for Finance, Paschal Donohoe TD, and the Minister for Public Expenditure & Reform, Michael McGrath TD, welcomed the publication of the Article IV report through a press release.

The Article IV process is a requirement for all members of the Fund and takes place on a periodic, usually annual, basis. This year’s review took place virtually from 26 April to Friday, 7 May 2021. There was no review in 2020 due to the pandemic. The next review will be held in 2022.