Kim Doyle, Tax Director with Grant Thornton is joined by Anthony Crewe, Transfer Pricing Director with Grant Thornton. Kim discusses the latest in tax, including the Covid-19 support schemes. Anthony shares his insight into the impact of the Covid-19 pandemic on companies’ transfer pricing regimes and the Irish transfer pricing rules.
Last month the Dáil approved the motions for Regulations for the Employment Wage Subsidy Scheme (EWSS) and the Covid restrictions Support Scheme (CRSS) to extend both schemes until 30 June 2021. The schemes were legislated to apply until the end of March 2021 however, the Minister for Finance may extend the schemes beyond that date but no later than 31 December 2021.
The stay and spend scheme which offers a tax credit of 20% on eligible expenditure on holiday accommodation and eat in food and drink, up to a maximum of €125 for 2020 and 2021 expired at the end of April.
Responding to parliamentary questions on a possible extension to the scheme the Minister for Finance said that while he is very mindful of the significant difficulties that remain to be faced by the hospitality sector, the broad interests of taxpayers also need to be taken into account. He indicated that he does not believe extending the scheme over the summer months in circumstances where we will all be staying at home and hopefully holidaying in Ireland will serve in the best interests of all taxpayers.
He said it may be more appropriate to take stock again in a number of months’ time and assess if the position needs to be reconsidered at that point.
The Minister for Finance announced the establishment of the Commission on Taxation and Welfare. The Commission has the job of considering how the taxation and welfare systems can support economic activity and promote increased employment and prosperity, while ensuring that there are sufficient resources available to meet the costs of the public services and supports in the medium and longer term.
Anthony discusses the Irish transfer pricing rules and the impact of the Covid-19 pandemic on companies’ transfer pricing regime.