Business Plus


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.

 ?? ??

Newspapers in English

Newspapers from Ireland