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| CAI Slams Boycott Of Irish Household Tax |
by Jason Gorringe, Tax-News.com, London
Tuesday, December 20, 2011
Ireland's taxpayers should not boycott the new Household Charge, regardless of any legitimate
concerns they may have about it, Chartered Accountants Ireland (CAI) has said.
CAI has slammed the plans of nine rebel members of
the Irish parliament to boycott the levy as inappropriate, and says their calls
should be ignored.
In anticipation of a full property tax, set to be introduced in 2013, the Irish
government is to implement a EUR100 (USD130) Household Charge as of January,
2012. Eligible taxpayers will have three months to comply with the payment,
or face late payment penalties of EUR10 a month.
The initiative has come under strong criticism and a group of lawmakers, led
by the Socialist member Joe Higgins, has threatened to refuse to pay the
tax. He and his colleagues have urged the public to follow their lead and refuse
to comply.
CAI has voiced its own concerns about the measure,
noting that there are legitimate issues with its application where substantial
amounts of Stamp Duty have recently been paid on the property.
However, it argues that Ireland's strong tax compliance culture is being undermined
by calls for a boycott. Moreover, the group points out, it is illegal and undemocratic
not to comply with any tax raised through correct procedure in parliament.
Commenting, John Hannaway, president of CAI, said:
“We simply cannot choose to disregard taxes and levies on personal or
ideological grounds. A strong compliance culture is essential for any modern
democracy. The State should not have to divert scarce resources to combat tax
evasion, nor should the confidence of honest taxpayers in the system be undermined
by the dishonesty of the few”.
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