Accountants to meet Fiscal Commission in push for devolved corporation tax rate
TWO in three chartered accountants in the north say they favour the introduction of a devolved corporation tax rate for the region.
They are also insisting the temporary 5 per cent VAT rate for hospitality should remain beyond its proposed September 30 expiry until at least the end of next March.
And next week a delegation from their industry body Chartered Accountants Ireland will meet the north's newly-constituted regional Independent Fiscal Commission to raise their concerns.
CAI, which represents 5,000 accountants working in Northern Ireland, surveyed members for its annual position paper The Next Financial Year.
In it, the Institute highlights the potential of a lower more competitive rate of corporation tax and the benefits it could bring, along with a range of other measures it says represents an innovative approach to supporting business and helping the northern economy rebound after the Covid-19 pandemic.
Chartered Accountants Ireland president Paul Henry said: “We have long favoured the consideration of a devolved rate of corporate tax in the region, and the fundamental reasons to introduce this in Northern Ireland are unchanged.
“A lower, competitive rate, coupled with the dual benefit of having access to both the UK and the EU’s single market for goods, would put Northern Ireland in a unique position to also attract foreign direct investment, particularly in manufacturing and distribution.
“An increase in the main rate of corporation tax in the UK from April 2023, the UK’s exit from the EU, and the establishment of an independent Fiscal Commission by the Northern Ireland Executive make this a timely issue. I look forward to leading an Institute delegation to meet with the Commission on this issue next week.”
Chartered Accountants Ireland is also calling for an extension to Covid business supports such as the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS) until at least the end of 2021.