IRELAND'S TAX system discriminates against the self-employed, a leading accountant said yesterday.

Addressing the annual conference of the Institute of Certified Public Accountants, Norman Adams said such discrimination threatened Irish entrepreneurship. "Action needs to be taken if the entrepreneurial culture that has been the cornerstone of Ireland's economic success is not threatened," he said.

Mr Adams, who is president of the institute, told delegates: "We have a deeply discriminatory and unfair situation that young entrepreneurs, who are paying themselves a very modest salary - as most young entrepreneurs do to ensure they can invest in their business - will find that they are paying three times as much tax, PRSI and levies as an employee with the same income."

He said someone earning €20,000 would have just over €1,000 deducted from their income under the PAYE system; a self-employed person with the same taxable income would be paying €2,800 in deductions. "Young entrepreneurs are, in effect, being penalised for taking the risk of starting a business at the very time when they need financial support the most."

Mr Adams said the disparity in tax take continued up the salary scale, but not to the same degree.