Robbie Gallagher (Fianna Fail) | Oireachtas source

I welcome the Minister of State to the House this morning. I thank her for taking time out of her busy schedule to respond to this Commencement matter.

As I am sure the Minister of State is aware, red tape, form-filling and unnecessary and complex paperwork is the bane of every single business in this country, notwithstanding the importance of due diligence and clear reporting to Revenue. It is important that the Government would be cognisant at all times of the current additional cost, including additional staff involved, in compliance. I can certainly relate to that as someone who has been involved in a small business for the best part of 20 years. Even in the small business that I was involved in, one person could be employed full time on compliance issues. That is an additional burden on businesses.

The vast majority of companies and employers may not be aware of the enhanced reporting requirements for Revenue that are due to come into effect on 1 January 2024, which is only a few short weeks away. The net result of that will be that employers will have to make returns in real time to Revenue when it comes to certain payments such as travel, subsistence, mileage, meals, remote working allowance, vouchers at Christmas, flowers sent on the birth of a child, on retirement, for an engagement, a wedding, or whatever else. To put it mildly, that would appear to me to be slightly over the top. The enhanced requirements will add additional cost to business and tie up additional staff in order to comply with this measure. I do not understand the thinking behind it.Perhaps the Minister of State will be able to shed light on that. It would suffice for such expenses to be reported yearly or twice yearly, rather than it having to be done in real time. Perhaps the Minister of State will explain the thinking in that regard.

We must always be conscious of the cost of doing business. As IBEC recently highlighted in a report it prepared, the cost of doing business is increasing. There are increases relating to statutory sick pay, the welcome increase in the minimum wage early next year, the new auto-enrolment for pensions and share options being taxed on a payroll basis. All these things add additional costs to businesses. I understand the Minister has to sign a commencement order for this to come into place for 1 January. There is a small window in which more information can be given to employers and companies regarding the effects of this coming in. Perhaps the reporting requirements, which are onerous, could be toned down a little. The requirement to account for everything, such as a bunch of flowers one might send to one's wife, girlfriend, boyfriend or whatever the case may be, appears to be over the top. We must always be cognisant that business is tough at the best of times. As a Government, we must do as much as we can to minimise the burden on business. This measure appears to be going in the opposite direction in that regard. I look forward to the Minister of State's reply.