TAXATION SERVICES

TAXATION SERVICES

MALONE & CO.

We offer a wide range of services which will minimise tax liabilities whilst ensuring full compliance with taxation legislation and other requirements. The tax services we provide include the following:

  • Compliance for corporates and individuals on all taxes
  • Tax based investments
  • VAT advisory services
  • Tax efficient remuneration schemes
  • Tax based planning
  • Tax effective personal wealth enhancement
  • Retirement planning including planning to sell or hand over the business
  • Revenue audits and tax investigations

Our relationship-based approach allows us to fully understand the needs of our client. This facilitates effective tax planning in the short to long term, focusing on the commercial, financial and practical realities. We also provide tax planning and compliance to high net worth individuals and employees of large & multinational corporations who wish to ensure their overall tax situation is managed efficiently.

MALONE & CO

OUR TAX SERVICES

The tax services we provide include the following:

INCOME TAX

Income and gains from the period before an individual moves to Ireland can be brought in to Ireland entirely tax free.

CORPORATION TAX

Ireland has for many years had a flat 12.5% corporate tax rate applicable to Irish trading profits.

CAPITAL GAINS TAX (CGT)

CGT is a tax on a capital gain arising on the disposal of assets owned by you.

CAPITAL ACQUISITIONS TAX (CAT)

Capital Acquisitions Tax (CAT) arises on the gift or inheritance of an asset. Once the taxable value of a gift or…

VALUE ADDED TAX (VAT)

Our firm specialises in the area of VAT consultancy. We have wide-ranging experience of dealings with both domestic VAT issues…

REVENUE AUDITS

We have significant experience in representing clients, both corporate and personal, in Revenue audits and investigations.

PAYROLL SERVICES

MALONE & CO.

With the introduction of PAYE modernisation, payroll operations have become more time consuming and extra care is required to ensure compliance with Revenue regulations and avoid costly penalties. Many businesses are now looking to outsource this function and we have a payroll department that provides this service to many businesses in all sectors and of all sizes. This work includes the following:

  • Preparation of weekly, fortnightly, monthly or other frequency payrolls to schedule
  • Computation of all payroll requirements
  • Verification of additions & deductions, PAYE, PRSI, USC and related issues
  • Computation of BIK notional pay elements
  • Provision of Payslips to employees either online or by post/delivery
  • Electronic payments direct to bank of employees
  • Comprehensive multi-format payroll reports with additional and customizable reports available
  • Notification to the Revenue Commissioners for leavers
  • Periodic returns to the Revenue Commissioners
  • Provide ongoing advice and support in relation to all payroll related matters

Please contact us if you would like to discuss outsourcing our payroll requirements.

COMPANY SECRETARIAL SERVICES

MALONE & CO.

Company law is both complex and detailed and impinges greatly on small businesses. Directors need to ensure at all times that they meet their requirements under the Companies Acts. Non-compliance with statutory obligations can result in significant late filing fees for companies, and can lead to court prosecutions for company directors.

We provide a complete range of services to companies to meet compliance standards and can support management by dealing with all aspects from incorporation to the wind up of a company.

Our services include:

  • company incorporations
  • annual compliance and minute keeping
  • provision of registered office
  • registration of business names
  • maintenance of statutory company records and compliance reviews
  • preparation of all statutory board meeting minutes and resolutions
  • advising on the responsibilities of company directors and secretary
  • changes of directors/secretary/registered office
  • advising on share compliance, including the issue of new shares, transfers of existing shares and share capital redemption
  • company strike offs, dissolution and restoration
  • outsourced company secretary service

Please contact us if you would like to discuss any company secretarial issues that you may have.

BOOKKEEPING & MANAGEMENT SERVICES

MALONE & CO.

We can provide your business with a full bookkeeping service to cater for your businesses needs, large or small.

We can assist clients in the preparation of books and records for businesses not having in-house expertise thus enabling clients to monitor and control their business on an ongoing basis. Compliance is an important issue and we provide a timely and accurate service to ensure that you can concentrate on your core business while we deal with all Revenue correspondences on your behalf. We also provide full VAT and RCT services.

MANAGEMENT SERVICES

We can provide a management accounting service that can assist in the preparation of periodic management accounts, budgets and cashflow forecasts to enable you to meet your business objectives. Our management accounting service can flow from our bookkeeping services or we can interface with your accounting operations to provide monthly or quarterly support. Our management services include the following:

  • Prepare cashflow projections and budgets
  • Prepare business plans
  • Provision of outsourced financial controller service
  • Assistance and advice with lease negotiations
  • Assistance with loan/grant applications & bank negotiations
  • Advising on buying/selling a business or asset

Our stiff are experienced in all the main accounting software packages on the market including Sage, Quick books, Surf, Zero, Red Books, Relate etc. We are also experienced in working with custom build or tailor-made software solutions specific to certain sectors or industries.

AUDITING SERVICES

MALONE & CO.

The annual statutory audit is a requirement for all limited companies that meet certain criteria under the Irish Companies Acts. Our Audit team provides a comprehensive range of auditing services to enable businesses to comply with all statutory obligations in a personalised, efficient and timely manner.

We apply a value added approach to our auditing service. Using this opportunity, our team can make an independent assessment of our client’s accounting systems, controls and procedures. We will provide recommendations for improvement and advise on the strengths and weaknesses of their accounting systems. This vigorous approach ensures that the critical issues impacting on their business are thoroughly assessed and accurately defined, allowing clients to focus on the growth and development of their businesses.

Our auditing services go beyond the basic legal and technical obligations and the routine tasks set down in a typical audit assignment. We believe that the audit provides vital insights into the operation and control of your business.

We aim to identify opportunities to improve profit and cash-flow performance and help clients safeguard their business assets.

We provide a partner led audit where the audit partner will be a key member of the audit team, participating at all stages of the audit.

We also provide audit services to the following:

  • Charities and not for profit organisations generally incorporated as companies limited by guarantee
  • Entities that require an audit for public funding purposes
  • Non trading companies and companies who are required to be audited for failing to file their annual return on time
  • Unincorporated entities who require an audit by their board, members or trustees
  • Subsidiary companies of international groups

The preparation of financial statements for clients is our core business and is a requirement for all entities, sole traders, partnerships or limited companies. Financial statements may be required for filing with Companies Registration Office, for monitoring of company performance or for tax purposes.

All Irish limited companies are obliged to prepare statutory financial statements whether they be audit or audit exempt. With the increase in the audit exemption limits in recent times many Irish companies now fall into the category of being audit exempt.

Criteria for Audit Exemption:

In respect of any financial year, if in that year and the financial year immediately preceding that year the company satisfies two of the three following conditions:

  • Turnover does not exceed €12M; and
  • The gross assets of the company < €6.6m; and
  • The average number of employees < 50;

the company may elect to claim audit exemption. Audit Exemption applies to any group company if the group as a whole qualifies as a Small Group based on the above criteria.

If a company’s annual return for either the current year or the previous year was not filed on time, the company may not be entitled to avail of audit exemption. We will advise on eligibility and complete the relevant paperwork to claim audit exemption status for all clients who satisfy the relevant criteria.

We deal in this area every day and therefore our team are always up to date with accounting regulations and the disclosures required in assisting directors meet their statutory duties. We can prepare financial statements either from your own accounting records (computerised or paper based), from source documents or from information held as part of our Bookkeeping service to you.

We will prepare your accounts and discuss and explain the outcomes with you and advise of any steps you could take to enhance your business.

VALUE ADDED TAX

MALONE & CO.

Our firm specialises in the area of VAT consultancy. We have wide-ranging experience of dealings with both domestic VAT issues and the international aspects of VAT on goods and services.

VAT is a consumption tax assessed on the value added to a product or service. It is an EU-wide tax, being operated with only minor variations by all countries within the EU. Knowledge of how VAT operates on transactions in other member states and outside of the EU is of growing importance to businesses in an increasingly global market place.

It applies to most goods and services that are bought or sold in the EU. Goods and services that are exported are normally not subject to VAT. However to keep the system fair for EU producers, VAT normally applies to the importation of goods and services.

The taxable person is obliged to charge and account for VAT on a periodic basis, normally bi-monthly, to the revenue commissioners. They can deduct VAT suffered on purchase of goods and services which have been used to make their own taxable supplies. VAT is charged at different rates depending on the type of business you are running, where the supply is made and whether the buyer of the good or service is a private individual or another business.

The current rates of vat and vat registration thresholds in Ireland are as follows:

  • 23% is the standard rate of VAT and all goods and services that do not fall into the reduced rate categories are charged at this rate.
  • 13.5% is a reduced rate of VAT for certain specified services such as electricity, building and building services, agricultural contracting services, short-term car hire, cleaning and maintenance services.
  • 9% is a new reduced rate of VAT for tourism-related activities including restaurants, hotels, cinemas, hairdressing and newspapers.
  • 4.8% is a reduced rate of VAT specifically for agriculture. It applies to livestock (excluding chickens), greyhounds and the hire of horses.
  • 0% (Zero) VAT rating includes all exports, tea, coffee, milk, bread, books, children’s clothes and shoes, oral medicine for humans and animals, vegetable seeds and fruit trees, fertilisers, large animal feed, disability aids such as wheelchairs, crutches and hearing aids.
  • Exempt from VAT

You do not have to pay any VAT on financial, medical or educational services. You may also not pay VAT for live theatrical and musical performances (except those where food or drink is served during all or part of the performance).

  • Difference between exemption and zero-rating

If a business person supplies taxable goods or services, including zero-rated ones, they can claim VAT back from the government on their taxable business purchases. However, if someone only supplies exempt goods or services, they cannot reclaim VAT.

You can get an extensive list of VAT ratings in Ireland from the Revenue Commissioners if you follow the link below:

http://www.revenue.ie/en/tax/vat/rates/index.jsp

REGISTRATION

Registration is obligatory if turnover exceeds the following limits:

Business supplying services€37,500 per annum
Business supplying goods €75,000 per annum
Intra community acquisitions €41,000 in a 12 month period

Also certain foreign traders supplying taxable services in Ireland or selling goods from stocks held in Ireland must register for Irish VAT regardless of the volume of sales.

There are also specific rules for distance sales to Ireland and for premises providers who allow non-established vendors to operate from their premises.

VAT ON PROPERTY

One of the most complicated areas in VAT legislation, and Irish tax legislation as a whole, is the operation of VAT on property transactions. We can advise you on the VAT issues regarding any property transaction such as:

  • Determining if VAT applies to your property transaction(s).
  • Advice on and calculation of your liability to VAT when selling property or granting leases.
  • Advice on surrendering or assigning/selling leases.
  • How VAT is operated on subsequent leases (granted following the early surrender of a previous lease).
  • Advice on all Revenue concessions and anti-avoidance measures that apply to property transactions.
  • How VAT on property applies in a VAT Group situation
  • The steps which should be taken in structuring property deals.

REVENUE AUDITS

MALONE & CO.

We have significant experience in representing clients, both corporate and personal, in Revenue audits and investigations. The importance of planning for Revenue audits cannot be overstated, due to the strict compliance approach taken by revenue in the way they conduct audits and the low monetary threshold after which publication of default can arise.

Should you be selected for enquiry by the Revenue Commissioners our firm can be of assistance as follows:

  • We can meet with you to discuss areas which the auditor is likely to focus on and help you to prepare for issues which are likely to be queried.
  • explaining the scope and limits of Revenue enquiries, and what is reasonable
  • We will inform you of the possible penalties would could arise if irregularities are uncovered and the implications of making a voluntary disclosure of any irregularities prior to commencement of the audit in order to mitigate any penalties.
  • We can assist you in taking the best strategy to mitigate the effects of the audit and conclude matters to the satisfaction of both you and the Revenue Commissioners.
  • We can represent you at all stages during the course of the audit and negotiate on your behalf directly with the Revenue Commissioners.
  • where necessary negotiating an extension to a deadline where information has been requested from the company
  • providing assistance should an agreement fail to be reached

It’s important to be aware that Revenue’s methods for selecting which businesses and taxpayers to audit are becoming increasingly sophisticated. With better use of IT systems, Revenue are gathering more and more data and also finding increasingly efficient ways of processing this data to their advantage.

Also, with Government expenditure well in excess of tax revenues, Revenue are coming under increasing pressure to identify errors and omissions in tax returns which will lead to higher returns on their audit investigations. Being mindful of this, ensuring a good compliance record and being pro-active in communications with Revenue over unusual transactions or trading histories will take you a step closer to minimising your chance of becoming the subject of an audit.

CAPITAL GAIN TAX

MALONE & CO.

CGT is a tax on a capital gain arising on the disposal of assets owned by you. At its simplest, deducting the price you paid for an asset when you acquired it from the sale proceeds when you dispose of it gives you the chargeable capital gain.

All forms of property are regarded as assets for Capital Gains Tax purposes whether situated in or outside the State. Examples of assets are:

  • Land
  • Shares
  • Goodwill
  • Currency, other than Irish currency

There are a number of exemptions from CGT such as:

  • Gains from the disposal of Governmental Stocks and Securities.
  • Gains from the disposal of tangible movable property, where the amount or value of the consideration does not exceed €2,540.
  • Gains from the disposal of wasting assets, i.e. assets with a predictable life of less than 50 years, for example, a private motorcar, livestock etc.
  • Gains from the disposal of your principal private residence.
  • Prize Bond, Lottery and Gaming winnings.

In calculating the amount of tax payable, deductions are allowable for incidental costs of acquisition, such as solicitor’s fees, stamp duty etc. and incidental costs of disposal such as, solicitors/auctioneers fees etc. In addition, where an asset was acquired before 2003, inflation relief may be available, effectively adjusting the cost in line with a published inflation factor.

The first €1,270 of taxable gains by an individual in a tax year are exempt. In the case of a married couple this exemption is available to each spouse but is not transferable.

Below shows the effect of residence/ordinary residence/domicile on capital gains tax status in Ireland:

Resident?

Ordinarily resident?

Domiciled?

Liable to Irish CGT on:

Yes

Yes

Yes

Worldwide gains

Yes

No

Yes

Worldwide gains

No

Yes

Yes

Worldwide gains

No

No

Yes / No

Irish specified assets

Yes

Yes

No

Irish gains and other gains as remitted

Yes

No

No

Irish gains and other gains as remitted

No

Yes

No

Irish gains and other gains as remitted

In the current market, our Capital Gains Tax planning services may be of particular interest to those considering disposing of assets. We will calculate your Capital Gains Tax liability, advise on ways of reducing it including the utilisation of tax losses, and identify the relevant payment dates.

CAPITAL ACQUISITION TAX

MALONE & CO.

Capital Acquisitions Tax (CAT) arises on the gift or inheritance of an asset. Once the taxable value of a gift or inheritance is determined, the amount of CAT to be paid varies depending on the relationship between the beneficiary (person receiving the gift or inheritance) and the person who provided the gift or inheritance (disponer). The gift/inheritance is valued for CAT purposes on the date the beneficiary becomes entitled to it. The total amount of the gift/inheritance taxable is the market value minus allowable deductions such as funeral expenses (in the case of an inheritance), legal costs or any debts which must be paid by law.

The level of CAT owed to the revenue will depend on the relationship between the disponer and the beneficiary. Any gift or inheritance received that exceeds the beneficiary’s group tax exemption threshold is taxed at the rate of CAT which is now 33%. The tax exemption thresholds are as follows:

Group

Post 14.10.15 Threshold

Group A – Son/Daughter (including step child or adopted child), Parents, in cases of inheritance of disponer.

€280,000

Group B – Brother/Sister, Niece/Nephew, Parent, Grandchild/Great Grand Child of disponer.

€30,150

Group C – Any relationship to disponer not included in Group A or Group B

€15,075

The beneficiary of the gift/inheritance is responsible for ensuring that any CAT owed is paid within four months of the valuation date. If you are non-resident then you must appoint a third party, such as a solicitor or accountant to take responsibility for the payment of CAT to the Revenue.

Subject to certain conditions, there are a number of exemptions from CAT as follows:

  • Gifts or inheritances between spouses.
  • The first €3,000 of taxable gifts from one individual to another in a calendar year.
  • Payments for damages or compensation.
  • Gift or inheritance of a dwelling house which is your main residence.
  • Benefits received for charitable purposes.
  • Business Relief – applies to gift or inheritance of business property.
  • Agriculture Relief – applies to gift or inheritance which consists of agricultural property such as land or machinery.