ANDREW GUERIN
Managing Partner Andrew Guerin & Associates
‘Tax compliance has become much more time-consuming’
ACTIVITY In the post-Covid period we have seen a substantial change in taxpayers’ attitudes in relation to tax planning. Whilst previously there was a general reluctance to address succession planning, in particular, this has now changed. Taxpayers are now much more aware of their net worth, and potential tax exposure on death and/or on the transfer of assets. More importantly, taxpayers are identifying steps which might be taken to minimise taxes for the next generation.
There are numerous invaluable tax reliefs which can be availed of for Capital Gains Tax purposes, including retirement relief. In addition, the 10% entrepreneur relief for the disposal of certain assets is also attractive, and the 90% reduction applicable to the value of business assets for inheritance tax purposes is also an area that is generating a lot of interest and activity.
We would like to see a simplification of the tax treatment on the tax reporting and treatment of income and gains generated from offshore funds. Many investment products do have an offshore fund aspect, and the variety of tax treatments in relation to such products is extremely complex, time-consuming and difficult to administer.
COMPLIANCE The Revenue Commissioners have become much more active with interventions in relation to the tax treatment of share schemes. Many beneficiaries of such schemes are totally unaware of the tax implications and liabilities arising on such schemes. The requirements to file personal tax returns, and report profits on share options exercised and CGT liabilities on the disposal of shares, is paramount. In summary, tax compliance has become much more time-consuming.
TAX INCENTIVES There is substantial tax relief available on pension contributions, particularly for corporate contributions, which are now being availed of on a much larger scale. The option to extract substantial tax-free lump-sums on retirement is very attractive.