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Newsletter | Articles   Irish Islands Could Become Financial Centres Under proposals put forward by Udaras na Gaeltachta (the regional authority responsible for the economic, social and cultural development of the Gaeltacht, areas of counties Donegal, Mayo, Galway, Kerry, Cork, Meath and Waterford), all the Irish islands could become financial centres - modelled loosely on the tax-free principality of Andorra. Udaras has proposed a radical plan to the Commission on Taxation recommending a special taxation incentive scheme for islands. The islands that could benefit from a change in tax status include Tory and Aranmore islands in Co Donegal, Clare Island in Co Mayo, the Aran Islands and Inishbofin in Co Galway, and the Co Cork islands of Cape Clear, Bere Island and Sherkin Island. Making the islands tax-free would promote economic activity on them and attract people to live there. The last three censuses taken in Ireland have each shown a decline in population. One part of the proposal is a pilot scheme that people living on these islands for at least six months of the year would be able to earn €100,000 a year tax free for 10 years -- even if they earn their money on the mainland. The exemption would apply to both new and existing businesses on the islands. Udaras has also proposed having a 100 per cent capital allowances/free depreciation write-off for any equipment or buildings provided for use in a business allowable against non-exempt income and a Business Expansion Scheme-type tax relief to apply to investors who invest capital in any business located on the islands. They also propose a VAT-refund scheme to be implemented for community-based activities that require capital expenditure on buildings and fit out. For further information contact Teresa Mee. |