Shane Cassells (Meath West, Fianna Fail) | Oireachtas source

I wish to thank the long list of speakers who contributed. One wonders about the complaints the Ceann Comhairle gets about Members being unable to get speaking time.

This is an important Bill. My colleague, Deputy John Lahart, spoke about the various areas where an office of tax simplification could be of assistance. I know of many elderly people who are often overwhelmed by the complexity that seems to be inherent in various State organisations, whether concerning social welfare, taxation or their local authorities. The Minister of State knows that from his work in his own constituency office. I know that and Deputy O'Reilly knows it too. This simply adds undue stress to their lives, which they could well do without. We only need to consider areas such as pensions, inheritance tax and probate to see this point.

An office of tax simplification can improve the experience for all users, including the self-employed worker, the stay at home carer, the pensioner, the PAYE worker, the SME owner and indeed the Revenue Commissioners themselves. This is something I have raised with Revenue on its numerous appearances before the Committee of Public Accounts. Everyone benefits from a simple and user-friendly tax system. A consistent and straightforward tax code is only part of the equation. The administration of tax is also a crucial element. This Bill will seek to simplify all this. An office of tax simplification will look at the entire tax system, including both the code and the administration.

As Deputy Lahart noted earlier, to support small businesses we have the knowledge development box, the key employee engagement programme, KEEP, the employment and investment incentive, EII, scheme and various other tax incentives. These schemes are not being taken up simply because the application processes are too complex. Complexity leads to added administrative expense. The greater the expense, the lower the take-up.

There is far too much complexity for individuals as well. I refer to inheritance tax. Let us suppose that a parent suddenly passes away and the family home is to be passed onto the child. At a time when an individual is already grieving and going through a very difficult time in his or her life, the inheritance tax system kicks in. There is a possible tax liability of €30,000 or €40,000 at a time of immense sadness. The system is complex for those who are not versed in tax law and are not party to the legislative debates that happen in this Chamber. It is intimidating. People are vulnerable and at the end of it all there could be a substantial tax bill, which adds yet more stress. It is in these areas that an office of tax simplification could play a vital role. It could look at all these areas objectively and provide recommendations to the Government, the Oireachtas and the public on how we can do better for our citizens. Nobody likes paying tax. By making the tax system simple for the taxpayer we would perhaps make the experience of paying tax less stressful.

The tax strategy group does great work each year. It plays an important role in policymaking. It brings various options on complex tax areas together and adds crucial insights in the various tax policy debates in every budget cycle. This Bill does not replace the tax strategy group but rather complements it. The tax strategy group is restricted in when it can bring issues forward. The office of tax simplification could report on any matter and would be able to look at every area of tax.

To conclude, a simple tax code benefits us all. Of course there is often a reason for complexity, such as to close off loopholes or to make sure reliefs are targeted at those who really need them.

However, I am convinced that there are areas that are overly burdensome and complex and that is where the Bill comes in. The Bill is not revolutionary. It is straightforward in its objective and it tackles a very specific issue. I appreciate the comments of Deputy O'Reilly and I hope that the entire House will get behind and support the Bill in order that we can obtain a simple, efficient and consistent tax code that is more competitive than is currently the case.

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