Public Consultation for the Review of the Special Assignee Relief Programme (SARP) and the Foreign Earnings Deduction (FED)

Tá comhairliúchán dúnta

Background
Submission Process
How to Respond

Background

Indecon international economic consultants has been appointed by the Minister of Finance to undertake an independent review of the Special Assignee Relief Programme (SARP) and the Foreign Earnings Deduction (FED).

The overall purpose of the reviews are outlined below.

SARP

To carry out a full examination, and to report on, the Special Assignee Relief programme (SARP) in accordance with the Department of Finance tax expenditure guidelines and taking account of the following considerations:

The continuing relevance of the Programme.
The performance of the Programme in terms of meeting its objectives, including the attraction of skilled individuals and key decision makers to Irish-based operations and reducing the costs to employers of such assignments and assisting with business expansion and employment creation.
The particular features of the Programme, to include the method by which tax relief is given.
The annual cost of the programme and the efficiency of its operation for all stakeholders.
The overall impact of the Programme, including elements such as the annual Exchequer benefit.

The appropriateness of the present upper and the lower limit on the quantum of income that should benefit from the tax relief will also be examined having regard to the objectives of the scheme and to principles of tax equity.

In addition, the examination should have regard to similar incentives that exist in other jurisdictions and should incorporate stakeholder consultation.

FED

To carry out a full examination, and to report on, the Foreign Earnings Deduction in accordance with the Department of Finance tax expenditure guidelines and taking account of the following considerations:

The continuing relevance of the incentive in the context of recent political developments (Brexit etc.).
Analysis of key indicators to establish if the addition of qualifying countries has resulted in growth in these export markets.
The annual cost, exchequer benefit and take-up of the incentive (including the efficiency of the operation of the incentive for all stakeholders).
The overall impact of the incentive.
The particular features of the Programme, to include: the level of the relief available; the method by which tax relief is given, the interaction of the scheme within the PAYE system; and the list of eligible countries in the context of government policy priorities (Global Ireland 2025).
Examination of similar type programmes in a number of other jurisdictions.
Stakeholder consultation.
Any other matters arising.

Submission Process

Interested parties are invited to provide written responses on any aspects of the terms of reference.

Responses should be submitted by email or post to Indecon at the contact details provided below. A closing date for submissions of 14 July 2019 will be strictly applied and submission received by close of business on this date will be considered as part of the review process.

Individuals or organisations who have already submitted material as part of the recent SME review can submit material already provided to this consultation exercise.

Taxpayers who have utilised the relief are also invited to contribute to a confidential information request which can be accessed by the following links:

Confidential Information Request for Companies Utilising the Foreign Earnings Deduction (FED) - https://www.research.net/r/FEDCompanies
Confidential Information Request for Companies Utilising the Special Assignee Relief Programme (SARP) - https://www.research.net/r/SARPCompanies

There is also an opportunity for advisers who have assisted clients to utilise the relief to contribute via separate links as follows:

Confidential Information Request for Companies’ Tax Advisers Concerning the Foreign Earnings Deduction (FED) - https://www.research.net/r/FEDTaxAdvisers
Confidential Information Request for Companies’ Tax Advisers Concerning the Special Assignee Relief Programme (SARP) - https://www.research.net/r/SARPTaxAdvisers

These links provide a very important opportunity to contribute directly to the review on key issues which will be considered.

How to Respond

By email:

Brian O’Connell

Divisional Director

Indecon International Economic Consultants

Email: boconnell@indecon.ie

Or by post to:

Indecon International Economic Consultants

Indecon House

4 Fitzwilliam Place

Dublin 2

When responding please indicate whether you are contributing to the consultation process as a professional adviser, representative body, business or member of the public. Please note that extracts from submissions, unless you indicate elements are commercially sensitive, may be included in the Indecon review and submissions are subject to Freedom of Information legislation.