Tax-delay scheme will help Irish businesses through the recession
3 October 2010
Ireland should follow Australia in instituting a tax-delay scheme for businesses struggling to pay their tax debts, says SME expert Tony Markwell.
Markwell, who is in Dublin to speak at an international conference on the challenges facing dynamic Small and Medium businesses growing internationally, insisted that the Australian tax delay model is helping SMEs survive the recession.
Tony Markwell, an Australian Partner with Grant Thornton said: “The Australian Government have realised that SMEs are struggling to obtain payment for the work that they’ve carried out.”
“By allowing SMEs a year’s grace on their tax bill, you are giving businesses a chance to call in their debts.”
“Since the Global Financial Crisis hit, SMEs have seen the length of time it takes to receive payment for invoices skyrocket – I understand this is happening in Ireland too.”
“The tax-delay scheme has been a huge success in Australia and it is definitely something that the Irish Government should look at in forthcoming budgets,” said Markwell.
“Another idea that’s working for Australian SMEs is granting full tax write offs for expenditure on new equipment for start up companies in their first year.”
“In addition to making businesses more efficient, this has generated huge spin-off economic activity across the country.”
The Grant Thornton event brought together over 80 Partners from 28 different countries to discuss the “New Normal” of increased regulation, low access to credit, operational fitness, and the movement of capital flows to the Brazil, Russian Indian and Chinese (BRIC) economies.
Patrick Burke, Partner at Grant Thornton Ireland said: “This event gave SME experts from across the world a chance to find out which business issues were localised to their own market, and which issues were international.”
“All countries are beginning to accept that for years to come, businesses will have to get used to operating with increased regulatory burden and decreased access to credit.”
“The businesses that can adapt to these conditions quickly and develop systems to deal with increased regulation, are the companies that will prosper in the coming years,” said Burke.
ENDS