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Family businesses most concerned about tax system here

Ireland’s taxation system has been ranked as the number one concern
among family businesses, according to the results of the first National
Family Business Sentiment Survey published today.

The report was compiled by the Family Business Network and professional services firm Smith and Williamson. 

Respondents called for a more progressive taxation regime with
changes specifically to Capital Acquisitions Tax and Capital Gains Tax,
as well as reform of the insurance sector. 

Capital Acquisitions Tax is levied on the portion of an inheritance
worth over a specific threshold and can be quite significant in the
transfer of a business from one generation to the next. 

Capital Gains Tax is charged on the profit made on the disposal of any asset. 

Despite around half of family businesses feeling less confident about
the current economic climate, six in ten say they are likely to create
new jobs within the next 12 months.  

However, this growth is contingent on what is referred to as “a
supportive political and economic environment which backs family
businesses to overcome the current challenges they face”. 

As well as taxation, other concerns include the impact of Brexit on
logistics and supply chains, which was cited by two thirds of
businesses. 

The cost of business insurance was ranked the third greatest concern.  

“The formulation of the National Economic Plan over the coming weeks
offers a unique opportunity to centre Ireland’s recovery around the
growth and development of indigenous Irish businesses,” John McGrane,
Executive Director of the Family Business Network, said. 

“That
vision can be achieved through a supportive taxation system and the
establishment of a National Recovery Forum which would provide a space
for family businesses, other employers, employees and Government to
collectively agree how we shape Ireland’s future economy,” he added. 

It is estimated that around two-thirds of businesses in Ireland are family owned.

Article Source: Family businesses most concerned about tax system here – RTE – Brian Finn

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