Crowe tax partner John Byrne outlines some of the missed opportunities from Budget 2019 to support the SME sector.
A tax-adviser will always say that there are missed opportunities in a budget. Crowe partner John Byrne thinks that this is truer than ever this year. Last Friday the Minister announced a tax windfall of €1bn arising from a change in international accounting policies around the timing of the recognition of income. This is a real windfall and is the equivalent of the government winning the lotto.
The Minister has a keen desire to be seen as being prudent and has allocated most of these funds to the Rainy Day fund. While this is commendable, perhaps some of the corporation tax windfall could have been used in imaginative ways to support Irish businesses.
Some measures that might have been considered are:
- A broader scheme of accelerated capital allowances to encourage investment for the future
- Incentives (double deduction) for investing in new technologies and businesses processes that would encourage businesses to adopt a growth strategy
- A radical incentive for employers and their employees to encourage employees to go overseas to seek new markets outside of the traditional UK market
- A tax advantaged loan scheme to allow employers to provide loans to employees towards a deposit for a home
- An improved entrepreneur relief
Maybe there is such a thing as an overly prudent Minister and maybe a visit to one of his predecessors in Kildare might not be a bad idea.