The CCAB-I issued recommendations for Budget 2022 to all TDs and Senators of the Oireachtas on Friday, 5 July. Several important tax changes are recommended including a rewrite of tax law governing the eligibility of expenditure for the R&D tax credit, the reduction of the CGT and CAT tax rates, reform of the tax system to recognise the costs of remote working and the simplification of the capital allowance regime for energy efficient equipment.

The CCAB-I also urged TDs and Senators to make legislative provision for a temporary change to section 997A TCA 1997 in Finance (Covid-19 and Miscellaneous Provisions) Bill 2021, which was moving through the Dáil at the time, to address the issue of proprietary directors and others captured by the section to not having entitlement to credit for PAYE warehoused by their employer.

The letter accompanying the submission to all TDs and Senators explained that proprietary directors of companies in the Tax Debt Warehousing Scheme will not have a credit for PAYE warehoused by their employer company in the calculation of their income tax liability for 2020 and preliminary tax liability for 2021. Despite these efforts, no amendments were included in the Bill to ensure that the proprietary directors of SMEs are not impacted by their employer’s participation in the Tax Debt Warehousing Scheme.

The CCAB-I’s Pre-Budget Submission 2022 also noted that moves to increase Employers PRSI will stifle job creation and certain tax measures should be considered to help developers manage the cost of building projects with the goal of increasing the supply of houses.