The next item of correspondence is item No. 561, a letter dated 6 November 2006 from the Irish Financial Services Regulatory Authority with a three-year strategic plan attached. I suggest we note it. Copies of the report are available on request.
Item No. 562 is a letter from the clerk regarding the Munich economic summit. The summit is over and it is a letter of acknowledgement to those who attended. We will note that. The next item is No. 563, EU scrutiny, a letter to the clerk from the clerk of the Sub-committee on EU Scrutiny. Document No. COM(2006)526 is a proposal for a directive adapting certain directives in the field of freedom to provide services by reason of the accession of Bulgaria and Romania. I do not believe the committee has been asked to study that, so we will note it.
The last item I wish to raise under correspondence is one which was brought to my attention today as a result of an article in today's Irish Independent. The heading of the article states that start-up firms face delayed shock over tax bills. Seemingly, there has been an arrangement in place where a start-up small company with a corporation tax liability of under €50,000 in its first year would pay its tax on its first year within six months of the year end. Normally companies and individuals pay their preliminary tax before the end of the year, which is to cover 90%, and the balance when the accounts are completed thereafter. There was a concession for start-up firms but it expired this week. Nobody really knew this arrangement was to expire, including the Institute of Taxation.
The Revenue Commissioners issued a brief on 20 November 2006 telling people they would have to have their preliminary tax in by 21 November 2006. They gave 24 hours notice when reminding people. It is a totally unsatisfactory way to do business, particularly for start-up businesses. In the first year of operation, start-up businesses have not even reached the end of their first financial year. Of course tax due should be paid, but there was a concession for start-up businesses which has seemingly expired. People were caught on the hop. The fact the Revenue Commissioners issued the letter 24 hours before the expiry date shows they must have known they had forgotten to tell people. I propose we write to the Revenue Commissioners seeking full clarification and perhaps to ISME.