7 May 2014
    
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Quintas Quarterly Newsletter
Introduction
€3,000 Tax Saving Opportunity
Best Practice for Charities
Tax Declaration to be Enforced on Child Minders
Recent News
Quarterly Economic Review - Domestic Recovery
Business Protection - What You Need To Know.
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Quarterly Economic Review - Domestic Recovery
by James McCarthy, Investment Analyst
 

Figures recently released by the Department of Finance shows continuing signs of improvement for the domestic economy. Overall the figures show a solid start to the year with the figures broadly in line with expectations. They reflect an improvement in the economy including a reduction in unemployment, growing income tax receipts while expenditure on public services remains within budget. 

Some headline figures to the end of March are as follows:

  1. The exchequer deficit is currently €2.3 billion versus €3.7 billion last year;
  2. Income Tax receipts increased 3.5%;
  3. VAT is up 6.4%;
  4. Corporation taxes are down 35.1% (this was largely forecast due to a non-recurring payment from a large corporation);
  5. Excise duties are up 11.5%;
  6. Capital Gains Tax is up 40.9%; 
  7. Controversially, Local Property Taxes were recorded at €214m to the end of March;
  8. Customs tax and Capital Acquisitions Taxes are up 9%. 

While the cost of servicing our national debt has increased by 2.3% to €1.97 billion, Ireland should be in a good position to service debt up to 2019/20 at least. Additionally, the Government is committed to reducing the current account deficit to under 3% by 2015 meaning our national debt will rise at a slower pace. 

Overall the stabilisation and turnaround of the economy is now gaining traction. While it will still take time for unemployment figures to come down and for de-leveraging to work its way out of the system, the Irish economy is now moving in a more positive direction compared to recent years. 

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