The Government's decision to appoint top accountants to the Commission on Taxation, which will conduct a root-and-branch review of the tax system, was attacked last night by the Labour Party. Mark Hennessy, Political Correspondent, reports.
The commission has been given strict terms of reference by Minister for Finance Brian Cowen not to recommend tax-rate increases or any proposals that would discourage people from taking up paid employment.
However, it has been asked to begin work immediately to design a carbon tax, which is part of the coalition deal between Fianna Fáil and the Greens, and is needed to cut Ireland's carbon emissions.
"As the introduction of a carbon tax requires a completely new tax charge and structure, the commission is asked to commence work in this area immediately," Mr Cowen said last night.
The body, which must report by September 2009, will be headed by Revenue Commissioners chairman Frank Daly, who retires from his post next month.
However, in an unusually personalised attack, Labour's deputy leader, Joan Burton, said the commission's membership appeared to be "disproportionately skewed towards those who in the past would have had a professional relationship with the very wealthy and who may well have been involved in advising clients on tax avoidance measures".
She added: "There appear to be few voices on the commission who would have much direct experience of the tax issues of concern to low and middle earners."
Last night Mr Cowen said the commission would set the agenda for Ireland's taxation policy "for the next decade at least", and had to "take a strategic, considered and balanced" view.
The body's membership includes representatives from the business, trade union, farming and voluntary sectors, along with accountants and tax experts, Mr Cowen said.
While Ms Burton welcomed the creation of the commission, she added that it was disappointing that it would not investigate the ability of high earners to cut their tax liabilities through legal avoidance measures, such as by claiming to live abroad.
Tax commission: Its members.
Besides Mr Daly, the other members of the commission are:
Tom Arnold, chief executive of Concern; Julie Burke, JMB Tax Solicitors; Micheál Collins, department of economics, Trinity College; Frank Convery, Heritage Trust professor of environmental policy; Tom Donohoe, partner, Russell Brennan Keane Chartered Accountants; Eoin Fahy, KBC Asset Management; Brendan Hayes, vice-president, Siptu;
Sinéad Leech, director, Integral Finance and Technology Ltd; Con Lucey, chief economist, Irish Farmers' Association; Colin Hunt, division director, Macquarie Capital Group; Danny McCoy, director, Ibec; Fergal O'Rourke, partner, PWC; Mary O'Sullivan, Irish Bankers' Federation; Mark Redmond, chief executive of the Irish Taxation Institute; Willie Soffe, chairman, Dublin Transportation Office; Deirdre Somers, chief executive, Irish Stock Exchange; and Mary Walshe, chartered accountant.
