This blog will examine the tax considerations in relation to loans to participators. This anti avoidance measure attacks the practice of withdrawing profits from close companies in the form of loans. Without this measure it would be possible for shareholders in close company to borrow money from the company instead of taking remuneration or dividends.
Pearse Trust Blog
The Irish Government has courted international controversy with its proposal for a preferential tax regime for income derived from intellectual property, known as the Knowledge Development Box (“KDB”). This blog post will discuss the outline of the proposal.
The proposed KDB is in line with the commitment contained in the Road Map for Ireland’s Tax Competitiveness, which was published in October 2014 alongside the Irish Government’s Budget for 2015. It was noted in the document that the global economy is evolving and business assets resulting from investment in “knowledge-based capital”, such as intellectual property, are becoming a significant driver of economic growth in OECD economies.Read More
Ireland’s Special Assignee Relief Programme (“SARP”) is a tax relief designed to boost the relocation of key talent to Ireland. The new SARP was introduced in 2012 to assist Irish companies and multinational companies in attracting key employees to Ireland. Where qualifying employees relocate to Ireland, SARP allows income tax relief in the form of a tax deduction from employment income.
The good news is that the Irish Finance Act 2014 has made a number of improvements to the relief which has allowed for the SARP to be available to a larger group of key talent relocating to Ireland since 1 January 2015.
There have been continuous improvements to Ireland’s Research and Development (“R&D”) Tax Credit since its introduction in 2004.
The 2015 Budget also made a major amendment to the R&D Tax Credit. The 2003 “base year” will be removed entirely from 1 January 2015.
The 2013 Act, which amended the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (the “2010 Act”), was introduced to allow Ireland to cooperate further with the recommendations of the Financial Action Task Force (“FATF”) and to incorporate the State’s experience in the area since the introduction of the 2010 Act.
On 14 October 2014, the Minister for Finance Michael Noonan, delivered Ireland’s Budget for 2015. As part of the Budget package, the Minister also published a Road Map “to secure Ireland’s place as the destination for the best and most successful companies in the world”.
The favourable provisions introduced in the Budget increase the attractiveness of Ireland as a location to carry on business and also improve the transparency of Ireland’s tax regime.
A summary of the advantageous measures incorporated in the Budget are as follows:
In our previous blog ‘Creditors and their Powers: An Introduction’, we established some of the facts about creditors and looked at their involvement in High Court Liquidations, Creditors Voluntary Liquidation and also their powers to appoint receivers or examiners. This blog will examine further situations where creditors can exercise their powers in respect of debts owed to them.
Creditors’ Powers To Seek Court Judgments & Where Default Exists
Creditors have the power to seek a Court Judgment against a company if they fail to pay a debt owing to the creditor. This judgment may be enforced by registration in the High Court or collection by the Sheriff.
A creditor is a person or company to whom money is owing, creditors can be divided into two types; secured creditors and unsecured creditors.
Secured creditors have their debt secured against the borrower’s assets. The security provided with a registered charge could be over property, a ship, piece of machinery, shares, intellectual property such as copyrights, patents, trade marks and other such assets.
Many security documents have clauses reserving the right for the secured creditor to appoint a receiver in the event of the debt remaining unpaid. The receiver will sell the secured asset in an attempt to recover the creditor’s debt.
Further to our previous blog on FATCA wherein we observed the postponement of the implementation dates for FATCA, the regime has now been implemented since July 2014.
Jurisdictions across the world are producing local legislation and guidance in order to implement FATCA on their home soil.
What Is iXBRL Filing All About?
Legislative changes in the Finance Acts 2012 and 2013 extended the definition of a Corporate Tax Return to encompass financial statements. Revenue requires mandated companies to submit these financial statements through ROS in iXBRL.