EY reacts to the Government’s Summer Economic Statement (SES)

Shane MacSweeney – Head of Government and Infrastructure, EY Ireland, comments on Capital Expenditure and infrastructure

Sarah Connellan – Tax Partner, EY Ireland,  comments on Share Award Tax Incentives for SME Sector.

Joe Bollard – Head of International Tax, EY Ireland, comments on Ireland’s Corporate Tax Rate and Competitiveness.

Shane MacSweeney, Head of Government and Infrastructure, EY Ireland reacts to the Summer Economic Statement 2017

“EY welcomes the Irish Government’s Summer Statement and in particular the increased focus and investment in public infrastructure. Our country is at a critical economic cross-roads with Brexit, wider geopolitics and technological disruption.  We believe that sustained and sensible investment in Ireland’s infrastructure over the coming years will help safeguard Ireland’s economic recovery, making Ireland a better place to live, work and invest.

With a finite quantum of public funds available, we believe that the adoption of a more holistic approach to this investment would bring a very real opportunity for the economy to make significant advances during these uncertain and complex times. Prioritisation of infrastructure projects and critically establishing an extended pipeline of such projects over the next 3, 5 and 10 years will allow Ireland to leverage these opportunities within the current and future economic environments”.

Sarah Connellan, Tax Partner, EY Ireland, reacts to the Summer Economic Statement 2017

“We welcome the Minister for Finance and Public Expenditure & Reform, announcement that he will follow through on introducing Share Award Tax Incentives relevant to the private SME sector.  To date, share awards for all employees have been treated similarly in Ireland, however those in the SME private sector have been at a disadvantage as the larger PLC’s and Multi-national employers tend to have an open and ready market for the sale of shares.

A general tax efficient share award regime in Ireland will be imperative to ensure Ireland’s competitiveness to attract and retain key personnel in Ireland to support our future labour demands”.

Joe Bollard, Head of International Tax, EY Ireland, reacts to the Summer Economic Statement 2017

“We welcome the Minister for Finance and Public Expenditure & Reform, commitment today in the Summer Economic Statement to a growth-friendly tax system and in particular to maintain its vow to sustaining an attractive, stable corporate tax regime.  

In a survey launched earlier this week by EY, Dublin came out as the preferred Brexit location among Financial Services companies. Financial Services companies and other regulated businesses are looking to make sure they can continue to conduct business across the EU, whilst retaining a strong base in London, and they are now starting to select potential European locations.  It is therefore crucial that we do not look at Ireland’s competitive corporate tax rate in isolation and we factor in for example, capital expenditure and our overall tax burden, to ensure Ireland is the number one location of choice. (report attached)

“We await publication of Professor Seamus Coffey’s review of the Corporation Tax Code.  EY made several recommendations for consideration by Professor Coffey aimed at improving the competitiveness of the Irish regime and providing certainty to business on the manner in which various OECD and EU developments will be dealt with in Irish law. 

These policy decisions are of key relevance to our clients, domestic and FDI, across all sectors.  We will continue to engage with Government, the Department of Finance and other stakeholders on those recommendations.”

Article Published: 14/07/2017