Thomas Pringle (Donegal, Independent) | Oireachtas source

I am grateful for the opportunity to contribute to the debate on the Finance (No. 2) Bill 2023. This is one of the largest Finance Bills put forward for some time, mostly due to the implementation of the EU minimum tax directive and the OECD model rules regarding pillar 2. Despite being the largest Finance Bill in a long time, it does very little for the ordinary citizens of the country. There are many simple things the Government could implement to make life much easier for ordinary people, especially during this cost-of-living crisis.

One example is for people in cohabiting relationships. People who have dependants and can prove long-term relationships should be allowed to be assessed through the Revenue system in the same way as married couples are. It should be equal across the board, especially given that many couples these days choose not to marry for a variety of reasons. One of the most common reasons is that weddings are extremely expensive and many simply cannot afford to marry. It is only right that the Revenue system should reflect modern day Ireland and allow cohabiting couples to share tax credits and increased rate bands.

This legislation also missed the opportunity to abolish the TV licence. Many members of the public have been calling for this, particularly since the summer. The payment is unfair and unequal. It makes no sense that people are forced to pay the same amount of €160 no matter what income they have and no matter what their financial situation is. I do not see why households on the minimum wage should be expected to pay the same as Deputies in this House for their TV licence. TV licences should be funded by general taxation to ensure fairness.

The Government should be introducing more targeted measures to reach those who actually need help and assistance during the cost-of-living crisis. There are many areas of this legislation where this is severely lacking. For example, mortgage interest tax relief is being introduced on a one-year basis for individuals holding mortgages between €80,000 and €500,000. I have said many times that one-off payments do not work. Mortgage interest tax relief is not a targeted measure, and although many will benefit from this tax relief, many will also not require it. This is a massive waste of public funds, just like the electricity allowance. It may reach some who need it, but millions will also be wasted on those who do not. I cannot understand why the Department of Finance has been unable to devise targeted schemes, especially given that this point was raised multiple times at last year's budget. It is either a complete lack of creativity or total incompetence or not caring one way or the other about the ordinary citizens that this Government is supposed to represent.

Regarding the defective concrete products levy, I am surprised at the decision to remove ready-to-pour-concrete used in the manufacture of precast concrete products from the scope of the levy. I am also surprised that the Government plans to refund all ready-to-pour-concrete levies paid since the introduction of the levy this year. The Government needs to admit that it is the cause of the defective concrete problem with its light-touch regulation. The people are victims of this should not have to pay for the Government's negligence.

The legislation introduces a 15% minimum corporation tax rate that will apply to multinationals and domestic businesses with a global annual turnover of €750 million in at least two of the preceding four tax years. This will only be effective if the multinational businesses are forced to pay this rate and are not given any exemptions. However, we know they will be. From looking into corporation tax myself, it seems to be a common occurrence that while domestic businesses are paying the full percentage of corporation tax, many multinationals are somehow getting away without paying the full amount at all. This is completely unacceptable and cannot be allowed to continue. If we are introducing a higher level of corporation tax, then we need to ensure this percentage will actually be paid, especially by multinationals. We talk about the fact we have the lowest corporation tax rate in the western world, but in fact it is even lower because most multinational companies do not actually pay the corporation tax rate we do have. I looked at it some time ago and I found that some companies were paying 3% or 4% corporation tax rather than the 12.5% we have. We should close that gap. If we ensure companies paid the 12.5% rate rather than increasing corporation tax, we would raise billions upon billions more in funding that could be used for the benefit of everybody.

This Bill has raised a few questions regarding the increase in the rate of the research and development tax credit to 30% and the increase in the first year payment threshold from €25,000 to €50,000. It has been reported that this will hugely benefit large multinationals as well as the SME sector. However, I am very sceptical that SMEs will really see the same benefits. I am wondering which companies will really benefit from this and whether this tax credit has been created to offset corporation tax of multinationals? It is hard to believe, but it probably has.

Regarding the 50% back on rates, I would like to know exactly how this will work for small businesses. Do the rates need to be up to date and will there be a grant for it or will the 50% automatically come off the rates and a demand of 50% less will be made? I am not sure if this measure will work. It would be interesting to see how it works for the small and micro retailers. Many people in rural Ireland do not seem to benefit at all from this. If this can work, it should make a difference, but it will be interesting to see how it works.

Regarding the film tax credit, what conditions are applicable to it? Will the film companies be expected to treat workers properly and give them all the benefits they are supposed to have by being workers? Will the false self-employment in this sector be dealt with?

I hope that the Minister will address some of these questions in the response and the final wrap-up to this debate. Overall, the budget has supposedly been full of measures to help small businesses and taxpayers, but I do not think it has. It is plain to be seen. We will see that a lot of businesses will struggle over the next year. That is a shame because we need to maintain those small businesses and keep them afloat because that is what is keeping rural Ireland going. The Government should be targeting those measures to give them greater benefit.

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