Tax is potentially the greatest cost you will ever face in business or in your personal life. One of the most important aspects of your business and personal life should be tax planning.
The purpose of tax planning is to take advantage of available opportunities under current laws to reduce the amount of tax owed under a particular tax head. Tax planning involves tax avoidance and tax deferral rather than tax evasion.
Good tax planning involves examining the commercial implications of transactions and transaction structures rather than simply examining the tax consequences.
Tax planning should include an assessment of how the individual tax heads interact with each other as it is often the case that a structure that reduces Capital Gains Tax, for example, might cause Income Tax at a higher rate to become payable.
Examples of situations where tax planning becomes vital include:
- Buying and selling property – CGT payment deadlines can be relatively short (two months after the taxable event) and penalties are applied rigorously to late payments of CGT. Where property has been held for many years, or a number of part-disposals have taken place, it can take a considerable time to gather the documentation. Good planning would greatly assist. When buying a property, should you buy it with an annuity mortgage, pension-backed mortgage or through a Self Administered Retirement Trust?
- Retirement – Issues include claiming retirement relief, having a tax-based succession plan in place, pension provisions, etc
- Borrowing – are you sure the interest on the loan is tax-deductible and that you are maximizing your deductions
- Divorce or separation - because of the manner in which tax law handles transfers of property between spouses, what appears to be a fair split on the surface can turn into just the opposite in the long-run.
- Purchasing business equipment – lease, hire-purchase, term loan or buy outright. The right tax decision is often not the best commercial decision and vice-versa
In fact, virtually every aspect of business and personal life which involves finances also involves tax and good tax planning and consultancy can pay for itself many times over.
Our tax team is led by Robert Browne, a member of the Irish Tax Institute with extensive experience assisting owner-managers make tax-based decisions.
Our tax practice covers the following areas:
· Tax Minimization
· Tax Efficient Remuneration
· Capital Gains Tax Planning
· Tax Audits & Investigations
· Inheritance Tax Planning
· Payroll Bureau
For further assistance in this area please contact either:
Tel: 046 943 7900
Mob: 087 413 3975
Tel: 046 943 7900
Mob: 086 608 8869