Pearse Trust Blog

Nowhere To Hide? The International Push For Corporate Transparency

Posted by Pearse Trust on Monday, May 30, 2016

Until recently, the United Kingdom was ploughing a lonely furrow as the only country to have followed through on a commitment by the G8 to increase transparency surrounding the ownership and control of corporate entities, with firms preparing for the imminent introduction of its “persons with significant interest” rules.

However, since the leak of the Panama Papers in early April 2016, several governments are now clamouring to get their hands on beneficial ownership information.

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Tags: United Kingdom, EU, Panama Papers, AML

UK Consultation - Criminal Facilitation of Tax Evasion

Posted by Pearse Trust on Wednesday, May 25, 2016

On 17 April 2016, HMRC published a consultation document titled ‘Tackling tax evasion: a new corporate offence of failure to prevent the criminal facilitation of tax evasion’.

This follows an earlier related consultation in July 2015 and the response document of December 2015 which contained a first draft of the legislation. In their latest consultation, HMRC is inviting feedback on the wording of the new corporate criminal offence and how this policy is best expressed in statute and guidance.

Additionally, this consultation seeks stakeholder views to ensure that the offence is both effective at meeting the stated objectives, and not unduly burdensome.

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Tags: Legal, United Kingdom, Tax

The UK Tax System Six Years On

Posted by Pearse Trust on Monday, May 23, 2016

When he was appointed Chancellor of the Exchequer in 2010, George Osborne said that the Conservative-led coalition Government would carry out “unashamedly pro-business” policies.

Six years later, has the UK business environment improved?

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Tags: United Kingdom, Tax, brexit

Country by Country Reporting Becoming Mandatory in EU

Posted by Pearse Trust on Wednesday, May 18, 2016

The European Commission released a proposal on 12 April 2016 to introduce mandatory public country-by-country reporting for large multinational entities operating within the EU.

The intention is that this information would be made available for each company by way of a stand-alone report which should remain accessible by the public for a period of at least five years through the organisation’s website.

Furthermore, the EC suggests that this report would also have to be filed with a business register within the EU.

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Tags: EU, Anti-Money Laundering

Canada Resurrects Key Investment Tax Credit (LSVCC)

Posted by Pearse Trust on Monday, May 16, 2016

Canada’s new Liberal Government has announced plans to reintroduce a tax credit for investments in Labour-Sponsored Venture Capital Companies (LSVCC) to achieve the twin objectives of increasing SMEs’ access to finance and provide middle-class savers with a tax-efficient investment vehicle.

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Tags: Tax, Canada

Voluntary Strike Off of a UK Limited Company

Posted by Pearse Trust on Wednesday, May 11, 2016

When a UK Limited Company has ceased activity, it can be dissolved. In certain circumstances, the most efficient and cost effective way to dissolve a company is a voluntary strike off.

New regulations introduced as part of the Small Business Enterprise and Employment Act 2015 mean that companies which apply to be struck off after the 10th of October 2015 should be removed from the register not less than two months after the publication of the Gazette notice, instead of three months which was the previous timeframe.

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Tags: Legal, Corporate Governance, United Kingdom

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

New UK Dispute Regulations: Registered Offices & Directors

Posted by Pearse Trust on Wednesday, May 04, 2016

New procedures regarding UK dispute regulations, including registered office address disputes and director disputes for UK companies and limited liability partnerships under the Small Business, Enterprise and Employment Act 2015, have come into force from 6 April 2016.

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Tags: Legal, Directors, United Kingdom

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

Upcoming Changes to the UK VAT Grouping Rules

Posted by Pearse Trust on Wednesday, Apr 27, 2016

The United Kingdom Government is currently consulting taxpayers on proposed changes to value-added tax rules that could have an impact on companies operating a VAT group structure. 

VAT grouping provisions are included in both European Union and UK legislation.

Article 11 of the EU VAT Directive allows member states to treat two or more businesses established in the territory of that member state as a single taxable person (a VAT group) if the businesses have close economic, financial, and organizational links.

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Tags: Legal, United Kingdom, Tax, VAT