Corporation Tax
One of the main advantages of, and a motivating factor for, company formation is the lower rate of tax payable on company profits when compared to the higher rate of income tax.
There is specific legislation in place for the taxation of company profits. In addition, there is also legislation to ensure that the favourable tax rates on company profits are not abused. Therefore, it is essential that you receive the best advice in relation to company taxation.
This area is a speciality of Brett & Co. and below are some of the issues within corporation tax on which we can advise you:
topFamily / Closely Owned Companies
In addition to complying with all of the taxation legislation applicable to companies in general, companies which are under the control of a small number of shareholders must contend with additional legislation aimed specifically at such companies.
There can be many adverse tax consequences for such companies arising from these provisions. Financial dealings between directors/shareholders and closely owned companies can have serious tax implications. Also, closely owned companies which earn investment or rental income can be faced with higher tax bills under this legislation.
We can advise you if these provisions apply to your company and if so, how to continue operating in a tax efficient manner whilst minimising any adverse effects arising from this legislation.
topCorporate Groups
There can be many tax benefits in a corporate group structure. To get the greatest benefit out of a group or consortium structure from a taxation viewpoint, it is essential to get the best advice, which we can provide.
Just some of the matters on which we can advise include:
- Whether your business should be operated via a group and determining which group structure is right for you.
- Establishment of a tax efficient group structure including advice on all capital gains tax implications of necessary corporate re-organisations required to achieve the ideal structure. (see Re-organisations, Acquisitions & Mergers in our Capital Gains Tax section)
- The ongoing tax implications of all intra-group transactions.
- The implications of a company joining or leaving a group.
topDividends, Distributions & Dividend Withholding Tax
Dividends and many other types of payments/distributions to shareholders from a company are subject to income tax in the hands of the shareholder. In certain circumstances, payments to shareholders may fall to be taxed under the capital gains tax code, at a much lower rate.
Given the choice, any shareholder would opt for a capital gains tax treatment, therefore a whole body of
anti-avoidance legislation is in place to counter transactions engineered to attain such a treatment.
What does and does not constitute a dividend or distribution from a company is now a critical area when shareholders
receive any form of payment from a company.
We can advise you of the tax treatment of any payment (in cash or any other form) from a company to a shareholder.
In addition, you can consult us on all manner of issues relating to dividends and distributions, including:
- The tax consequences for a company of making a distribution.
- The taxation treatment of bonus issues of shares, repayments of share capital and a company buying back its own shares.
- The operation of Dividend Withholding Tax on dividends and distributions.
topInternational Issues
When trading in two different countries, it is important to consider both the domestic and foreign tax issues arising. We can advise you on this and suggest the most tax efficient method of establishing and operating in a foreign market in your particular circumstances.
With regard to Irish tax, we can advise any Irish company on setting up and operating in a foreign country and can also advise any foreign company on setting up and operating in Ireland.
topCompanies & Stamp Duty
Stamp Duty affects companies as it affects individuals. However, the operation of stamp duty on transactions in corporate group situations can differ, and we can advise on the rules and reliefs available in such situations.
For more details on how we can help you with stamp duty issues, see our Stamp Duty page.