The Covid-19 pandemic has resulted in the unusual spectre of the Government providing financial assistance to a large swathe of Irish businesses in order to keep their lights on. Whilst this period of Governmental generosity is viewed as an economic necessity, a large part of the cost of this financial assistance may ultimately have to be paid for by those same businesses and their staff in the form of future tax increases. One would have thought that the economy will require significant stimulation in the short term and therefore unlikely that tax rate increases will be sought in VAT; indeed it is far more likely that VAT reductions are sought across many sectors to boost activity. The sacred cow of Irish taxation, the 12.5% corporation tax rate, will not be increased – as arguably to do so would be detrimental to the FDI sector.
Read the full article written by Mark and Amanda which explores the possibilties for mitigating future increased tax burdens.