asked the Minister for Finance if he will make a statement on the Government's attitude to the recommendations of the Commission on Taxation; and his plans, if any, to implement the Commission's findings.
Written Answers. - Commission on Taxation.
110.
The views of the Government on the key recommendations of the Commission on Taxation were set out in paragraphs 6.4, 6.5 and 6.6 of the National Plan, Building on Reality. As indicated in the plan the Government have reservations about such key recommendations as a single rate of income tax and VAT and the introduction of the expenditure tax. Notwithstanding this, the Government are in sympathy with the commission's preference for a simpler and more efficient tax system on a wider base. The rationalisation of both the income tax and VAT systems were consistent with the Commission's recommendation for a simpler tax system.
The Government have given effect to a number of specific Commission recommendations. These include:
The abolition of the income tax child allowance and its integration with the social welfare childrens allowance into the child benefit scheme
The introduction of Advance Corporation Tax
The restriction of capital allowances to a net of grants basis.
Consideration is being given to the recommendations in the Fifth Report of the Commission on Tax Administration, particularly in relation to their proposal for a self-assessment system for the taxes which are directly assessed at present.