Robert Troy (Longford-Westmeath, Fianna Fail)
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140. To ask the Minister for Finance the way in which the terms of reference were set for the Commission on Taxation; and the way in which the recommendations will support entrepreneurs in Ireland. [46047/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Commission on Taxation and Welfare was an independent group that was established in April 2021 as a result of a commitment in the Programme for Government. The terms of reference for the Commission members were broad and comprehensive. The Commission was asked to independently consider how best 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.

The Commission was called on to consider some specific policy matters including reforms to the social insurance system, how the taxation system can support the transition to a low carbon economy, and the role of the tax and welfare systems in achieving housing policy objectives; all while taking account of relevant issues such as the impact of the COVID 19 pandemic, aging demographics, and digital disruption and automation. Furthermore, the Commission was asked to review how best the taxation environment for SMEs and entrepreneurs can ensure that Ireland remains an attractive place to sustain and grow an existing business or to start and scale up a new business.

These terms of reference were drafted in accordance with the principles of taxation and welfare policy outlined within the 2020 Programme for Government. This includes the Government’s commitment to a pro-enterprise policy framework and to providing a stable and sustainable regulatory and tax environment.

An independent review of this nature complies with best practice and is important to ensure that the taxation and welfare system remains fit for purpose into the medium to long term.

'Foundations for the Future’, the Report of the Commission on Taxation and Welfare, is a wide ranging report that contains over 500 pages and 116 recommendations. This includes a number of recommendations related to supporting economic activity and the tax environment for SMEs and entrepreneurs in particular.

It is important to allow time for detailed consideration of these serious recommendations. It is my intention to provide an initial response to some of the recommendations as part of the upcoming budget. The medium to long-term focused recommendations will also serve to inform this and future governments’ deliberations on these important challenges for many years to come.