FRANK GREENE

Business Plus - - BP SURVEY -

Tax Part­ner Mazars

Au­tumn is a busy time of year for tax prac­tices and Frank Greene says cer­tain work on trans­ac­tions/re­or­gan­i­sa­tions has been put on hold. “We have spent a lot of time sup­port­ing clients on the wage sub­sidy schemes and deal­ing with tax debts. This is likely to con­tinue into next year,” says Greene.

WAGE SUB­SI­DIES The main is­sue that has arisen with the TWSS is the fact that em­ploy­ees will have In­come Tax li­a­bil­i­ties on the sub­sidy that will have to be paid in fu­ture years. Clar­ity is needed for sit­u­a­tions where an em­ployer agrees to fully or par­tially pay the tax li­a­bil­ity, as the pay­ment of a tax li­a­bil­ity of an em­ployee can give rise to a fur­ther ben­e­fit, and em­ploy­ers will be re­luc­tant to, in essence, pay the tax twice.

Many busi­nesses in hos­pi­tal­ity and re­tail will likely be us­ing the new EWSS out of fi­nan­cial ne­ces­sity. All busi­ness own­ers should look at their fi­nan­cial po­si­tion cur­rently — and over the next 12 months — to see whether they are likely to satisfy the cri­te­ria to ob­tain the sub­sidy. The econ­omy is still in a frag­ile sit­u­a­tion and this is likely to con­tinue over the next six to 12 months.

WARE­HOUS­ING TAX DEBT Com­pa­nies wish­ing to ware­house tax debts should en­sure that all their tax re­turns have filed, be­fore work­ing out how much and when they pay. While the 3% in­ter­est rate is wel­come, the nor­mal rate of 8/10% is out of kil­ter with other coun­tries and needs to be per­ma­nently re­duced.

SELF-EM­PLOYED TAX RE­LIEF The 2019 tax re­turn will need to be filed in Novem­ber 2020. In­di­vid­u­als should be pre­par­ing that now and see­ing what li­a­bil­ity/re­fund they have for 2019, as well as look­ing at the loss scheme to either get an off­set against tax or ob­tain a re­fund as soon as pos­si­ble. We en­cour­age any­body im­pacted to con­tact their tax ad­viser/ac­coun­tant for guid­ance.

BUD­GET 2021 It is likely that busi­nesses will need longer-term for­bear­ance on tax debts, con­tin­ued wage sub­si­dies and the abil­ity to raise fund­ing through banksup­ported loans. And also, most likely, an ex­pan­sion of the EIIS scheme to all sec­tors of the econ­omy for a pe­riod of time.

‘Busi­nesses will likely need con­tin­ued wage sub­si­dies’

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