‘There is an increased level of Revenue interventions’ JOHN FITZGERALD

Tax Partner McInerney Saunders

ACTIVITY Tax compliance is a necessary part of doing business and I have noticed an increased level of Revenue interventions recently. In some cases this can require a lot of input from the client, which takes them away from the normal day-to-day activities. The tax landscape is ever changing and evolving, and for smaller businesses that may not have a dedicated finance function it can be very challenging trying to keep up with all the requirements, such as changing VAT rates, additional reporting obligations, and various deadlines to be met for different taxes. This is why it is important to have a good tax adviser who can keep you informed of your obligations and assist in reducing the tax compliance burden where possible.

WAREHOUSED TAX DEBT We work with clients and Revenue to find reasonable and sustainable solutions for repaying tax debts. This involves communicating with Revenue, and putting forward tailored solutions based on the amount of debt involved, the client’s financial situation, and their ability to pay. The repayment terms need to be manageable to ensure the survival of the business. It’s more likely that taxpayers who keep their current filings and tax payments up to date will receive a favourable outcome when addressing the repayment terms of warehoused debt.

TAX INCENTIVES Entrepreneur relief is a very valuable incentive which allows for a reduced CGT rate of 10% on the disposal of qualifying business assets, subject to certain conditions. Pension contributions to approved schemes are eligible for tax relief which reduces the client’s taxable income. With the Employment and Investment Incentive, investors in certain Irish SMEs can benefit from income tax relief of up to 40% with potential for capital growth. We strongly advise our clients to seek professional financial advice and engage in careful planning to ensure they make the most of available incentives.