Latest news with #Ifac
Irish Times
5 days ago
- Business
- Irish Times
Ireland on course for record tax year despite US tariff threat
The State remains on course for another record tax year despite the threat from US tariffs. According to the latest exchequer returns, tax receipts for the year to the end of July came to €58 billion. This was €5.6 billion or 11 per cent up on last year's record total at the same stage. The strong out-turn was again driven by corporation tax receipts which came to €1.2 billion in July, up nearly €900 million on the same month last year. READ MORE On a cumulative basis, receipts from the business tax came to €16 billion for the seven-month period, up by €3.5 billion year on year. [ Tax and spending package of €9.4bn to form basis of Budget 2026 Opens in new window ] However, the latest exchequer data published by the Department of Finance point to a worrying rise in spending. Total voted expenditure for the period amounted to €60.5 billion, which was €4.8 billion or 8.6 per cent ahead of the same period in 2024. The figures come on the back of warnings from the Irish Fiscal Advisory Council (Ifac) that Government budget policy has 'lost its anchor' with spending on a potentially unsustainable trajectory. The budgetary watchdog said overruns in day-to-day spending are likely to top €2 billion this year. The exchequer figures show that on a cumulative basis, income tax receipts to the end of July came to €20.3 billion, up nearly 4 per cent on the same period last year, which reflects the strength of the State's labour market. VAT receipts in July, which is a VAT-due month, were up marginally at €3.3 billion. Receipts from the sales tax for the seven months came in at €14.8 billion, up 4.8 per cent year on year.
RTÉ News
5 days ago
- Business
- RTÉ News
Public finances benefitting from young population
The Irish Fiscal Advisory Council (Ifac) is warning that Ireland faces major spending pressures from an ageing population and climate change. A new report - 'Boston or Berlin? How does Ireland's tax and spending compare?' - states that Ireland looks like a low tax, low spend country relative to other high-income European countries. But it says this is mainly due to Ireland's "relatively young population and strong economic growth". A younger population means the government currently spends less on pensions and healthcare than it otherwise would. It says that as Ireland's population ages, spending in these areas is expected to rise. This demographic shift will gradually bring Ireland's government spending more in line with levels seen in other European countries. One area it highlights where Ireland is already a relatively high spender is healthcare. It says that as the population ages, this is likely to rise further, which would make Ireland even more of an outlier. The report states that Ireland collects a lower level of government revenue than most other high-income European countries. "This mostly driven by social insurance paid both by employees and employers," explained Niall Conroy, author of the report. "When exceptional corporation tax is excluded, government revenue in Ireland is €4,700 per person lower than the European average," he added. At the same time, Ireland collects a high level of corporation tax. This is partly because many highly profitable multinational companies have a strong presence in Ireland. In conclusion the report notes that recently introduced savings funds are a step in the right direction, but won't cover all future spending pressures and additional revenue will need to be raised or spending reallocated. It advises the more the government sets aside today, the smaller the fiscal adjustments required in the decades to come.
Irish Times
6 days ago
- Business
- Irish Times
Ireland economically closer to ‘Boston than Berlin', driven by its young population, notes Ifac report
Ireland is a relatively low-tax, low-spend country compared to its European peers, making it economically closer to Boston than Berlin , but this is driven not by ideology, but by demographics. That's according to a new report by the Irish Fiscal Advisory Council (Ifac). It showed that general Government spending as a share of national income was about 40 per cent in the Republic compared to a European average of 49 per cent and a US average of just 38 per cent. However, Ifac noted that 'if Ireland had similar demographics to other high-income European countries, spending on health and old-age social protection would be higher'. READ MORE Ireland has a relatively young population, with fewer people aged 65 and over, which means the Government here spends less on pensions and healthcare than it otherwise would. 'As Ireland's population ages, spending in these areas is expected to rise. This demographic shift will gradually bring Ireland's Government spending more in line with levels seen in other European countries,' it said. The State was also found to have one of the lowest levels of Government tax revenue as a percentage of national income in Europe. The Government here, on average, collects €2,600 less in tax per person than the European average, it said. When excess corporation tax is excluded, this gap increases to €4,700 per person. Did the EU have its hands tied before striking a trade deal with the US? Listen | 23:32 This again aligns the State with other low-tax jurisdictions while making it something of an outlier in Europe. 'At first glance, Ireland appears to be a low-tax, low-spend country relative to other high-income European countries,' Ifac's report said. 'However, this is largely driven by Ireland's relatively young population and strong economic growth. One area where Ireland is already a relatively high spender is healthcare. 'As the population ages, this is likely to rise further, making Ireland even more of an outlier compared to other countries. Education is another area of interest. Ireland spends less than the European average but delivers above-average results. This suggests strong efficiency in education spending,' it said. Ifac noted that the recently introduced savings funds – the Future Ireland Fund and Infrastructure, Climate and Nature Fund – were a step in the right direction and could help 'offset some of these future costs'. 'However, these funds alone will not be able to cover all future spending pressure,' it warned. Central Bank of Ireland governor Gabriel Makhlouf recently warned that Government spending would need to increase by about €265 billion over the next 25 years to pay for an ageing population, more housing and cutting emissions. Separately, the Organisation for Economic Co-operation and Development (OECD) has warned that weaker levels of business investment in advanced countries is now a big threat to global growth. OECD statistics showed that Ireland was one of a host of countries where investment is still, as of 2024, below the trend seen in the pre-financial crisis and pre-pandemic periods. The figures showed the State recorded the steepest drop-off in investment following the pandemic of any OECD country. If corporate spending on new projects and facilities does not pick up, countries will 'not be able to sustain growth', Álvaro Pereira, outgoing chief economist at the Paris-based organisation, told the Financial Times.
Irish Independent
24-07-2025
- Business
- Irish Independent
Accounting firm with Cork base to create 400 jobs as revenues sore
Ifac has four offices across the county in Bandon, Blarney, Mallow and Skibbereen, and is celebrating 50 years in operation this year. The firm has 30 offices scattered across Ireland, supporting over 30,000 clients. Through their services, they support 18,000 producers, 3,000 clients in the agri-food sector, and 7,000 SMEs with a full range of professional services, including accounting, tax, audit, corporate finance, consultancy, corporate recovery, payroll, financial planning, company secretarial, and business valuations. With revenues expected to hit €50 million, Ifac has transformed from its humble beginnings to become a top ten accountancy and advisory firm. The firm began as a specialist advisor to Irish farmers and has seen remarkable growth, from undergoing a successful rebrand in 2018 to expanding its services in farming, food, agri-business, the SME space, tax, and audit, thereby meeting and exceeding client needs. Founding chair Donal Cashman said the firm is investing in the communities they operate in. 'While the firm will continue to respect its heritage, it will continue to grow with Irish farmers and producers, alongside expanding into new markets. 'Its focus today is very much on continuous improvement, most recently marked by the launch of a new specialist team for mid to large SMEs. 'And as Ifac enters its next chapter, its mission remains unchanged: to help clients succeed on the farm, in business, and beyond,' Mr Cashman said.
Irish Independent
24-07-2025
- Business
- Irish Independent
IT services company FutureRange acquires division of DigitalWell as it eyes expansion
No financial details of the deal were disclosed. FutureRange, which is part of the accountancy and consultancy HLB Ireland Group, says that it will now create 10 jobs to accompany the corporate move. The acquisition is the first since HLB and FutureRange received an undisclosed investment from the Irish private equity firm Cardinal Capital in March. 'This acquisition deepens our technical expertise and broadens our regional reach,' said Danny McEntee, the managing director of FutureRange. The company says the deal helps to expand its coverage to Dublin, Cork and Limerick. 'This strategic divestment enables us to fully focus on our core growth areas, business transformation services spanning customer experience, digital innovation, AI, communications and secure connectivity where we see significant market opportunity.' said Ross Murray, CEO of DigitalWell. 'We have been very deliberate in choosing FutureRange as the right home for our managed IT services clients and team. They are not only a strong cultural and technical fit, they also share our commitment to excellence and to building long-term, trusted relationships.' The deal comes after a 50-year-old accounting, tax and business advisory firm based in Cork plans to create an ambitious 400 jobs during the next three years. Ifac has four offices across the county in Bandon, Blarney, Mallow and Skibbereen, and has 30 offices across Ireland with over 30,000 clients. Ifac expects to reach €50m in revenue, according to the company.
