The British Irish Chamber of Commerce is calling for the establishment of an Office for Tax Reform which would recommend and advise the Government on how to simplify the burdensome nature of Ireland's tax system on businesses.
It has published its submission to the Commission on Taxation and Welfare.
The organisation representing businesses on both sides of the Irish Sea recommended that the Office of Tax Reform be modelled on the UK statutory body, the Office of Tax Simplification, to alleviate unnecessary time delays and costs imposed upon businesses by the layering of additional rules in recent years.
The Chamber stressed that the introduction of new obligations such as the Anti-Tax-Avoidance Directive (ATAD) and the OECD’s Base Erosion Profit Shifting (BEPS) measures without reforming the wider tax system are leading to unnecessary confusion and contradictions between tax rules.
In its submission, the Chamber called on the Commission on Taxation and Welfare to simplify the R&D Tax Credit so that smaller Irish-owned businesses can more easily access the tax credit and adapt it to enable greater collaboration between SMEs.
The Capital Gains Tax Entrepreneurial Relief should be raised to €15m and its scope expanded to cover dividends, it said.
UK and Irish business leaders also urged the Commission to consider reforms to the personal tax regime and the introduction of a more robust R&D tax credit to ensure Ireland remains an attractive place for top talent and entrepreneurs to locate to. This includes changes to the marginal income tax rate.
Paul Lynam, Deputy Director-General of the British Irish Chamber of Commerce said, "The tax system continues to be a crucial factor determining Ireland’s future competitiveness. From helping to attract top international talent to our island to enabling indigenous businesses to grow, it can secure the recovery that has taken hold.
"But with global tax changes impacting upon our FDI model, it's vital that we shore up Ireland's global offering. Simplifying the complex tax system for businesses and addressing the tax burden on employees are two key tools in securing Ireland’s position as a location of choice for investment."
Mr Lynam said the Commission has a unique opportunity to rebalance Ireland's economic model.
"As businesses supporting €90bn in trade each year, we would encourage the Commission to be ambitious in reforming Ireland’s taxation system so that it supports high-value job creation and indigenous businesses."
