The Minister for Finance, Mr McCreevy, has said he is considering proposals for the possible reduction of taxation of share options in the Budget.
Speaking at the Irish Software Association 2000 Annual Awards last night, the Minister said a consultative committee involving ICTU, IBEC and Government departments, which was formed to prepare proposals for consideration in the next Budget, was looking at a wide range of issues including the tax treatment of share options.
"I understand that the committee has done a considerable amount of work and I look forward to considering its proposals in the context of the forthcoming Budget," he said.
The Irish Software Association has already called for a reduction in the taxation of share options in all industries in the next Budget as part of an anti-inflation package. It is calling for a reduction of the tax rate to 20 per cent on gains made from stock options, a move it said will make the Republic more competitive in the global labour market.
Baltimore Technologies was last night named company of the year at the ISA annual awards, which were presented by Mr McCreevy.
Norkom Technologies won the Innovation Award for Business, while Changing Worlds won the Technology category. Performix was named new company of the year.
Other firms shortlisted were CR2, Digital Channel Partners, Eontec, Eware, Managed Solutions Corporation, Marrakech, Network 365, Openet Telecom, Parthus and VisaTEC. The awards were sponsored by Davy Stockbrokers, Enterprise Ireland and Logica.
Speaking at the presentation, ISA chairman Mr Billy Huggard said this week's turmoil in the Nasdaq and technology stocks in general should not deflect people from the potential of the software industry for the Irish economy. He said there were 26,000 people employed in software in Ireland and about half of these were employed in the indigenous company sector.
"Ireland's future as a knowledge-based economy is dependent on the continued growth of this industry," said Mr Huggard. "As reflected in this year's award winners and shortlisted companies we are now seeing a Silicon Valley type entrepreneurial culture develop in Ireland. Working with Government, we must ensure that the infrastructure is in place to nurture this."
