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An announcement today by the Irish Government citing that income tax revenue has fallen by just one percent despite the pandemic has led to the Cross Border Workers Coalition to call for full flexibility for remote working for cross border workers.

Paul Quinn, Cross Border Workers Coalition

Reacting to the publication of the Irish Government’s Annual Taxation Report 2021, Paul Quinn, Co-Chair of the Cross Border Workers Coalition said “The Irish Government’s Annual Taxation Report 2021 offers a critical insight on the impact of the Covid-19 pandemic on Irish tax revenues. The headline development is that, despite the significant economic shock caused by the pandemic, income tax revenue fell by just one percent compared to last year. Remote working opportunities meant that sectors such as ICT, finance and professional services were protected from the significant losses seen in the likes of retail.”

“When the pandemic hit, Revenue temporarily waivered income tax laws which can leave cross-border workers with a ‘double tax’ on their income if they work remotely. These rules meant that, pre-pandemic, cross-border workers were forced to endure long daily commutes to avoid facing a significant financial penalty. Today’s report shows that suspending these tax rules had very limited impact on Irish income tax revenue, and reinforces our argument that permanently amending current legislation will only be beneficial.”

“This Report is clear evidence of the significant economic benefits remote working opportunities bring to the all-island economy and the urgent need for legislative reform. Looking forward, we now must see cross-border workers being granted full flexibility to work remotely by Finance Minister Donohoe in the Irish Budget in October.”

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