Pearse Trust Blog



Tax Deductions For Irish Trading Companies

Posted by Pearse Trust on Monday, May 09, 2016

An Irish trading company is entitled to claim tax deductions for expenses incurred “wholly and exclusively” for the purposes of its trade. 

The following expenses are generally tax deductible for Irish trading companies:

  • Professional expenses incurred such as accountancy fees, consultancy fees, etc.
  • Advertising costs incurred with regard to promoting the business.
  • Operating expenses such as payroll, rent, insurance and office supplies.
  • Repairs not involving material improvement.
  • Certain pre-trading expenses.

Where an expense is not incurred wholly and exclusively for trading purposes, the expense is disallowed when calculating the Irish corporation tax liability.

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Tags: Ireland, Accounting, Tax

Base Erosion and Profit Shifting - An Irish Perspective

Posted by Pearse Trust on Monday, May 02, 2016

The Organisation for Economic Co-operation and Development describe Base Erosion and Profit Shifting as tax planning strategies that either –

  1. exploit loopholes in tax rules to make profits disappear for tax purposes, or
  2. shift profits to low tax jurisdictions where there is little or no real activity resulting in low or no corporate tax being paid.

The OECD explain that when multinational companies are involved in cross border activities,  the interaction of domestic tax systems can lead to gaps which result in income not being taxed anywhere.  BEPS strategies abuse the gaps between the different tax systems in order to achieve double non-taxation.

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Tags: Ireland, Tax, EU, Economy

Regulatory Enforcement and Corporate Offences in Ireland

Posted by Pearse Trust on Monday, Apr 25, 2016

Ireland’s Law Reform Commission (LRC) has published an Issues Paper addressing regulatory questions arising from the international financial collapse of 2008.

Part 1 of the Issues Paper considers whether the supervisory and enforcement powers of Ireland’s main financial and economic regulators are adequate or need to be bolstered by civil financial sanctions and more effective co-ordination between regulators. 

Part 2 concerns gaps in the Irish criminal law and considers whether the law deals sufficiently with serious wrongdoing by corporate bodies, in particular current fraud legislation and the general rules for attributing criminal liability to corporate bodies. 


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Tags: Ireland, Legal

Pre-Incorporation Contracts – An Overview

Posted by Pearse Trust on Monday, Apr 11, 2016

Section 45 of the Companies Act 2014 replaces, with very similar wording, Section 37 of the Companies Act 1963.  It deals with “pre-incorporation contracts”. These are contracts entered into on behalf of a company prior to the date of its incorporation.

Such a contract may be ratified by the company subsequent to its incorporation.  If so ratified, the company becomes bound by it and is entitled to the benefit of it as if the company had been in existence at the date of the contract and had been a party to it.

Prior to, or in default of ratification, the person or persons who purported to act in the name of, or on behalf of the company are personally bound by the contract and are entitled to the benefit of it, unless there is express agreement to the contrary.

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Tags: Ireland, Legal, Corporate Governance, Incorporation

Doing Business in Ireland: Uncomplicated Corporate Compliance

Posted by Pearse Trust on Wednesday, Mar 30, 2016

Ireland has emerged as the least complicated country in the world for businesses to stay compliant with corporate regulations and undertake commercial operations, according to a new study.

In a recent report ranking 95 countries according to compliance requirements, Ireland was ranked to be the least complicated country in the world in terms of compliance requirements when doing business.

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Tags: Ireland, Legal, Corporate Governance, Economy, Investment

Increased Minority Shareholders' Protection and Compensation

Posted by Pearse Trust on Wednesday, Mar 09, 2016

“The strong rule the weak”. This idea is not new, but should it be allowed in business? Would this not stunt the economic growth of a country for failing to protect its shareholders? Any uncertainty over an investment will deter investors and shrink the overall economy. To mitigate risk to minorities and to ensure they are not bullied, or squeezed out, in the 1963 Act under Section 205 the minority shareholder protection rule was enacted into law.

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Tags: Ireland, Legal, Shareholders, Shares

Irish Corporate Entities – An Overview

Posted by Pearse Trust on Wednesday, Feb 10, 2016

In the modern business world, incorporating a company and the legal structure that an entity takes is a critical decision. When assessed correctly, the correct structure can provide substantial advantages for those undertaking commercial affairs. These advantages include limited liability, separate corporate personality, and possible advantageous taxation. With substantial advantages available, the new Companies Act 2014 provides for a number of distinct corporate entities.

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Tags: Ireland, Legal, Incorporation, Limited Companies

Ireland’s New Tax Relief Scheme For Entrepreneurs

Posted by Pearse Trust on Wednesday, Jan 20, 2016

Under the National Policy Statement on Entrepreneurship in Ireland  2014 it was identified that the business and tax environment for entrepreneurs and investors had become more challenging and that the right conditions must be implemented, with both tax rates and incentives supporting entrepreneurship.

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Tags: Ireland, Tax, Economy

Ireland's Companies Act 2014 & The Objects Clause

Posted by Pearse Trust on Monday, Jan 18, 2016

The Companies Act 2014 commenced in June 2015 with the aim of consolidating and simplifying company law in Ireland.  A major change in the law was the creation of a simplified private limited company without an objects clause. This blog examines the objects clause and the effect of Ireland's Companies Act 2014 on same. 

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Tags: Ireland, Legal, Corporate Governance, Limited Companies

Budget 2016 Strengthens Ireland As A Location For Business

Posted by Pearse Trust on Wednesday, Oct 14, 2015

On 13 October 2015, the Minister for Finance Michael Noonan, delivered Ireland’s Budget for 2016 and also provided an “Update on Ireland’s International Tax Strategy.

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Tags: Ireland, Tax