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Practitioner Services

If you are a practising solicitor, accountant or financial advisor and need advice on some of the more complex issues in taxation which you do not normally encounter or are not entirely familiar with, you can contact us or refer a client to us and we will offer expert advice on the issue at hand.

We can be consulted on the tax implications of any deal or transaction which your clients are involved in, and can offer advice to minimise tax exposures whilst always considering all other commercial aspects.

Below are just some of the scenarios and transactions on which we can advise.

topEstate Planning

Clients of yours who are in the process of structuring their assets and affairs in preparation for dispositions to beneficiaries may need to be informed of the tax issues arising as a result of their intentions. We can inform you or your client of the exact implications of their actions from a tax point of view and can provide tax advice with a view to keeping the ultimate tax burden on beneficiaries and disponers as low as possible.

Amongst the many issues in Estate Planning on which we can be consulted from a taxation viewpoint include:

  • CGT & Stamp Duty issues for disponers.
  • Structuring affairs such that beneficiaries avail of the major reliefs in CAT.
  • The use and taxation of trusts.
  • The taxation of personal representatives and administrators of estates.
  • Granting limited or life interests in property.
  • The consequences of a beneficiary disclaiming an inheritance.
  • Deeds of Family Arrangement.
  • The tax implications of granting Special and General Powers of Appointment.
  • The break-up of settlements (beneficiaries enlarging or disposing of their interests) and the consequent tax implications.

topExtraction of Funds from Companies

One of the perennial problems for shareholders is how to extract funds from a company in a tax efficient manner. Most methods chosen will usually result in funds being subject to income tax and levies as high as 44% in the hands of the shareholder.

Extraction of funds from a company can be an extremely important issue for business people planning to retire and trying to fund that retirement, or those moving onto a new venture and requiring the funds to do so.

However, there are ways to mitigate high income tax bills in this scenario. By consulting with us, we can help to minimise the amount of money taxed at your client's marginal rate of income tax, by intelligent use of reliefs in tax legislation.

topTransactions in Property & Shares

Property:

In any investment decision, taxation is an important issue to consider. Indeed, in some property transactions the taxation implications of the investment may well be the primary motivating factor behind the decision to invest owing to the availability of capital allowances which can be used to shelter rental and certain other income from taxation.

Eligibility for such schemes is governed by a plethora of conditions in tax legislation. If you have a client contemplating such an investment, we can advise them on the conditions to be met and how to maximise the taxation benefits from such a scheme.

Of course, every property transaction, no matter what the motivation of the client will have taxation implications. There could be capital allowances issues, stamp duty issues, capital gains tax issues or complex VAT issues arising, all of which we can be consulted on to ensure that your client is both in compliance with all of his/her duties under legislation and that the transaction is structured in as tax efficient a way as possible.

Shares:

For the owner-managed small company, the taxation of share transactions can be complicated in both the reliefs available and anti-avoidance measures in place. We can provide expert tax advice to controlling shareholders on issues such as re-organisations, acquisitions, retirement, giving control to another family member or third party and extracting funds from a company.

With growing participation in the stock market by private individuals and the increasing popularity of employer share schemes, it is not just shareholders in small private companies who need to worry about the tax implications of share transactions. Any Revenue approved employer share scheme is subject to rigorous conditions before and after approval is granted.
We can advise a client who may be an employer seeking to establish such a scheme of the conditions to be met and all of the tax implications arising from operating such a scheme. Alternatively, we can advise a client who is an employee intending to dispose of scheme shares.

Receiving the right taxation advice can be vital in transactions such as rights issues (and the sale of rights), bonus issues and options (on shares and any other asset). Whether you have a client requiring tax advice on a share transaction or a derivative transaction, they can be referred to us and we can help them with both compliance and tax planning matters.

topFormation & Split of Corporate Groups, Partnerships & Trusts

Any business formation, re-organisation or dissolution is fraught with legal and taxation complexities. Fortunately, Brett & Co. can relieve you of the taxation issues arising in any such scenario by advising your client on all matters in relation to the following:

Corporate Groups:

  • Forming a corporate group.
  • Operating via a corporate group.
  • Re-organising a group.
  • A company leaving a group or a group being dissolved.

Partnerships:

  • Transferring a sole trade into a partnership.
  • Admitting new partners to a partnership.
  • Partners leaving a partnership or the dissolution of a partnership.

Trusts:

  • Forming a fixed, accumulating or discretionary trust.
  • Taxation issues for trustees during the lifetime of the trust.
  • Appointing assets out of a trust.
  • All Irish taxation issues in relation to non-resident trusts.
  • Disposing of future interests or breaking up intended settlements.

topClose Company Planning

The majority of companies in Ireland would fall under the definition of "close" companies in tax legislation, i.e., being under the control of a small number of shareholders. Close company legislation combats abuse of the low corporation tax regime by persons currently paying tax on passive income at high income tax rates. There are also other provisions in legislation which can result in adverse tax consequences arising from financial dealings between a director/shareholder and a company.

When an area of legislation is introduced to target certain types of companies, such as close companies, there is inevitably a raft of definitions and conditions in place to identify which companies fall to be classed as close companies. For companies which are about to be incorporated, it is vital for the shareholders concerned to get advice on whether the company will be classified as a close company according to legislation. We can guide your client through the technicalities of the legislation in this respect.

For clients of yours which are already close companies as defined, we can advise on all transactions which may give rise to adverse tax consequences under close company legislation and can advise them on how to minimise possible surcharge tax on profits. There are also many other anti-avoidance measures in place regarding close companies on which you or your client can consult us on.

topPassing on a Family Business to the Next Generation

Passing on a family business to the next generation is common when a business person decides to retire or move on to something new. However, it is essential to receive the correct advice on all tax issues arising. Unnecessary tax bills can be avoided if the right advice is received and the transaction is structured as tax efficiently as possible.

There are many taxation exposures when a business is succeeded to. In addition, the transferor may need to make adequate financial provision for retirement, if retiring, or may need to extract funds from the company he/she is transferring to fund a new business venture. We can provide expert advice on how each of these goals can be attained in a tax efficient manner.

For the person succeeding to the business, there may be CAT issues. However, reliefs exist which may mitigate any possible CAT arising. We can advise both transferors and transferees not only if such reliefs will apply, but also on steps which can be taken by both in the lead up to succession to ensure qualification for such reliefs where possible.

topIndividuals Arriving in or Departing from the State

We all know of someone who has left Ireland and is working abroad. Once a person is no longer resident in the State, there will be no Irish tax issues arising for the most part. However, for those intending to leave the State or those intending to return, there will be Irish tax implications on which advice should be sought. We can advise a client of yours on all tax issues arising when a person leaves or arrives in the State and on the reliefs which are available in legislation to reduce exposure to Irish tax.

In particular, when a person arrives in the State having spent an extended period abroad, or a person is arriving in Ireland for the first time, they may be exposed to tax liabilities which could otherwise have been avoided if their financial affairs were structured correctly on their arrival. We can consult with any client of yours who is considering living in Ireland again, or for the first time, and help them structure their affairs in the most tax efficient manner possible.

Individuals leaving the State permanently or for an extended period may continue to be subject to Irish tax on certain income and gains for a number of years after their departure. We can advise any client of yours on their exposure to Irish tax following their departure.

topMarital Separation & Divorce

The breakdown of a marriage can be a very unhappy time for any couple. Unfortunately, as marriage confers many taxation benefits on a couple, its breakdown can also lead to adverse tax consequences. Many of the benefits enjoyed by married couples in Income Tax, CGT, CAT and Stamp Duty may be lost as a result of separation and/or divorce.

Getting the correct advice on the taxation issues surrounding a break-up is important. We can advise a client of yours on how separation/divorce agreements can be structured in the most tax efficient manner possible.

topTrusts

Any trust-related transaction can have tax consequences. When a settlor places assets in a trust, if a trust asset earns income, if a trust buys and sells assets and when assets are appointed out of a trust, tax in one form or another can arise. In discretionary trust cases, a further discretionary trust tax may become due once certain conditions are met. In short, tax is ever-present when it comes to trust transactions and we can provide expert tax advice on any trust or trust related transaction.

The taxation of non-resident trusts is an extremely complicated area in legislation, being dominated by anti-avoidance measures. In addition, substantial Irish tax liabilities can occur when a trust transitions from being Irish resident to non-resident. There are also detailed return requirements to be met in relation to offshore trusts.

If you have a client wishing to form a trust or involved in trust transactions or you yourself are advising on the establishment a trust for a client, be it Irish resident or offshore, we can provide all the taxation advice you will need in respect of any transaction, from compliance right through to planning advice on reducing tax liabilities where possible.

Further information on how we can help with trust taxation can be found in the Estates & Trusts section of our Income Tax page, the Trusts & CGT section of our CGT page and the Trusts section of our CAT page.

topVAT on Property & Commercial Leases

One of the most complicated areas in VAT legislation, and Irish tax legislation as a whole, is the operation of VAT on property transactions. So much so that a review of VAT on property transactions is being undertaken by Revenue in an attempt to make its operation less complex and more understandable to taxpayer and practitioner alike.

One of biggest sources of complication is the VAT treatment of long leases (10 years or more).
However, it is not just long leases which have VAT implications. VAT will also impact on other commercial property transactions such as the sale of a freehold or the letting of property on a short-term basis.

Expert tax advice should always be sought on the VAT implications of any property transaction, from the compliance issues involved right up to structuring a transaction to minimise exposure to present and indeed future VAT liabilities. We can provide just such advice to a client of yours involved in property transactions and further information is available on the Property Transactions section of our VAT page.

topRevenue Audits & Investigations

If one of your clients has been selected for Revenue Audit, it is essential that they are made aware of exactly what the audit entails, the possible consequences of the audit and the consequences of making voluntary disclosures of irregularities. It is also essential that good preparations are made in advance of an audit commencing.

With this in mind we have prepared a page on this website dedicated solely to Revenue Audit situations and how we can help a client of yours who has been selected for audit. Click here to access our Revenue Audit page.

From time to time Revenue will announce investigations into potential tax avoidance/evasion schemes, the most recent being the investigation into untaxed funds in Life Insurance Investment products. If you have a client who may fall into a class of individuals being investigated by Revenue, we can advise that client on the investigation being undertaken and, if relevant, the consequences of making a voluntary disclosure. We can also help in the preparation and timely filing of such a disclosure.