FRANK GREENE ‘Wealthy individuals are looking at what other jurisdictions they might move to’

Head of Tax Mazars

TAX ISSUES The main tax issues for some clients centre around the debt warehouse scheme for Covid deferred tax. If Covid-19 has taught us anything, it is the importance of keeping people off social welfare payments. Many businesses that have warehoused tax debt will not be able to pay the full amount due, and will require a combination of long-term forbearance and debt write-off. If Revenue is not willing to agree write-offs, companies should look at the SCARP option where the business is otherwise viable. Many businesses are sustainable if you discount some or all of the debts, and it would be a shame to see these go under.

POLITICS Business leaders and owners like certainty on tax, and any uncertainty in this area leads to nervousness. Entities coming in from abroad look at the political landscape and take that into account when deciding where they locate. With the huge growth in online business, many companies have greater flexibility as to where they locate, and many will spread their risk with locations in various countries. The business pull-out from Russia gives a flavour as to what can happen. Wealthy individuals are much more mobile and some are looking at what other jurisdictions they might move to.

CAPITAL TAXES The key criticism on the capital taxation front would be that the rates are too high at 33%. Entrepreneur Relief at 10% is available but has been capped at €1m for many years and should be moved up to €2m minimum.

EIIS For most companies the scheme is too complex and has serious financial consequences if you get any part of the 100 pages of legislative provisions wrong. The scheme should be overhauled into a more simplified business support.

EXIT RELIEFS In general most business owners would be aware of Entrepreneur Relief and Retirement Relief. However, in many cases for financial reasons they may not receive any value from same if they are passing on the business by way of gift or on a death. We come across many situations where business people have not managed or structured their tax affairs in the appropriate manner. This leads to future challenges that could have been avoided with proper planning.