Pearse Trust Blog

Where overseas companies and individuals, particularly those in finance related industries or high-level transactions enter into agreements or undertakings which are governed by UK legislation, such parties will ordinarily be required to provide an address for service within the UK.

This is a guest post written by Noel Cunningham, international tax liaison partner at Mazars Ireland.

Section 56 of the Irish Company Law Enforcement Act 2001 obliges liquidators of insolvent companies, within six months of their appointment, to submit a report to the Office of the Director of Corporate Enforcement detailing, inter alia, the conduct of the directors, shadow directors or de facto directors during the twelve months preceding the liquidation.   The liquidator is subsequently obliged to institute proceedings pursuant to section 150 of the Companies Act 1990 to have the directors restricted, unless relieved of this obligation by the Director of Corporate Enforcement.  In 2010, 170 restriction applications were brought in the High Court, of which 156, or 96%, were successful. 

The Irish tax system does not impose taxation on foreign dividends received by an Irish company, provided that the foreign corporation tax and foreign withholding tax (if any) suffered by the subsidiary on the dividends is in excess of the Irish tax.

Who Is A Shadow Director?

Section 251 of the UK Companies Act 2006 and Section 27 of the Irish Companies Act 1990 define a shadow director as a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

Italy’s Prime Minister Silvio Berlusconi has the harshest words for the euro. In 2005, he said the euro has “screwed us all” and blamed it for Italy’s recession.  Now, Europe is on the brink of economic collapse, as evidenced by rising unemployment, a huge Greek national debt that is causing unrest, and other indicators that the euro was not a guarantee of economic prosperity.  Germany’s Prime Minister has a dire prediction for what will happen if the euro fails.  “If the euro fails, Europe fails,” Merkel has said, according to published reports.  She warned of a threat to peace in Europe and emphasised the need to protect Europe.

A consultation issued by the Department for Business, Innovation and Skills has proposed plans to allow more small companies to avail of audit exemptions in the UK.

The withholding taxes applicable to outward bound payments from cross-border arrangements should not be overlooked in planning international investments.  The treatment of profits extracted from an Irish company by way of dividends is no different. 

An “MLRO” is a Money Laundering Reporting Officer. In Ireland this nominated person is responsible for ensuring that transactions that arouse suspicions of money laundering or terrorist financing are reported to the Garda Siochana (the Irish Police) and the Revenue Commissioners.