TAX NEWS - June 2010

Ireland Tax: No comment from Taoiseach Cowen on property tax

Taoiseach Brian Cowen has refused to comment on speculation that a property tax may be introduced in December's Budget.

Fine Gael leader Enda Kenny described media reports of a possible property tax as grossly unfair. Mr Kenny said he would oppose any such plan.

He said that less than one in ten of the proposed cuts in the McCarthy plan had been implemented and until the plan was executed it was unfair to ask families to take more pain.

Brian Cowen said he could not speculate on what would be in the December Budget.

Mr Cowen acknowledged that the Programme for Government contained a proposal for a site tax and said the Commission of Taxation had recommended widening the tax base.


Taoiseach urged to pressure banks on SME lending

Meanwhile, the Labour Party leader has called on Taoiseach Brian Cowen to put pressure on the banks to give funding to businesses as they are obliged to do under the terms of the recapitalisation programme.

Eamon Gilmore said small and medium enterprises were being told by the banks not to bother applying for funding. He said over half of those that do get through the bank door have their applications rejected.

Mr Cowen said the purpose of recapitalisation was to provide adequate capital and rejected suggestions that the money was 'handed out'.

He said the Government had requested plans from the two main banks to show that they were providing €3 billion each in new credit facilities for small businesses this year and next.

He said that target had not been met but that the Government would continue to engage 'very directly' with the banks to ensure they do.

ISME, however, has pointed to a survey conducted by them that found three out of four companies were unaware of the Credit Review Office (CRO), recently set up by Government to review bank applications for loans or restructured credit facilities.

Their survey found that 77% of businesses did not know the service existed, and that increased promotion was needed or take up would remain low.

ISME also called for the Credit Review Office name to be changed to avoid confusion with the Companies Registration Office.