2013 Nov 26 - Brendan Twohig - Tax Planning
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© M.K.Brazil Tax Planning …..more important now than ever November 2013
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Transcript of 2013 Nov 26 - Brendan Twohig - Tax Planning
© M.K.Brazil
Tax Planning …..more important now than ever
November 2013
© M.K.Brazil
Tax Planning
<> Tax Trends
<> Tax Planning
<> Sundry Other Topical Issues
Tax Trends
© M.K.Brazil
0
100000
200000
300000
400000
500000
600000
2005 2006 2007 2008 2009 2010 2011 2012
Summary of Revenue Interventions over past 8 Years:
10 years of Mutual Assistance Requests from Other Countries:
0
500
1000
1500
2000
2500
3000
3500
4000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Effective Rate if Single and Self-Employed over 20 years:
0%
10%
20%
30%
40%
50%
60%
€30,000 €60,000 €90,000
Effective Rate if Married Employee with Child over 20 years:
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
€30,000 €60,000 €90,000
CAT Thresholds v Rate:
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
CT Rates over 20 Years:
0%
10%
20%
30%
40%
50%
60%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Case I Case V CCS
DIRT Rate Trends for Past 20 Years:
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
© M.K.Brazil
Tax Planning
Avoiding the Avoidable
<>
Availing of the Available
Tax Planning:
• Proactive v Reactive
• Event v Journey
• €1,000 x 100 = €100,000 x 1
• Does this apply to me? V Can this apply to me?
• Anything that reduces Tax = Tax Planning
Tax Planning cont…:
• Retirement Planning
o Retirement Relief
> 66 then must act pre end of 2013
€750k tax-free
> 55 and 10 years in business – Retirement is optional
Family Business to Child v to child + Bank + Revenue
o Pensions
• Pension Plan v Tax Plan
• Provision for Spouses completely under-utilised
o Terminations
• Tax free ex-gratia payments
Tax Planning cont…:
• Succession Planning
o Annual SGE - €3,000 per person per year
o Business Relief – Still 90%
o Agricultural Relief – not just for farmers?
o S.60 Policies – Effective form of wealth transfer
Tax Planning cont…:
• Reaction to DIRT Increase
o 1st January 2014 – so still have time to act
o DIRT applies when Interest is paid
o Interest First Deposit Account? 33% v 41%/45%
o Crystallise Exit Taxes? 36% v 41%/45%
• Direct Ownership of Shares v Bonds etc o CGT v Income Tax,
o Death = exit tax but no CGT
o Spouse – SRCOP – 20% v DIRT 41% etc
Tax Planning cont…:
• Sundry Other
o EIIS – marginal rate and no HIER
o Restructuring Family Company(ies)
o Life Insurance (not allowable) v Pension Term Assurance (allowable)
o Utilising Capital Losses
o 604A – 7-year Retention Exemption
…..etc etc
© M.K.Brazil
Sundry
/
Summary & Conclusions
Sundry Other Tax Issues
• Recent Budget
o HRI, SYOB Relief, Living City Incentive etc
o Debt Release – CGT implications
o CGT Relief for re-invested proceeds (Entrepreneur Relief)
• Utilising Capital Losses
• Planned Review of Agri Sector Incentives
…..etc etc
Summary:
• ABTAT
• It is your money:
Take the Initiative, Take Control …..but …..Take Advice
• If: “A fine is a tax for doing something wrong.
A tax is a fine for doing something right”
• Then
don’t do the right thing the wrong way!
© M.K.Brazil
This presentation is intended to be informative but issues are
condensed in the interest of clarity and brevity which may lead to over-
simplification and inaccuracies. The time restrictions should also be
considered as these may have lead to errors and omissions.
This format does not facilitate a more comprehensive examination of
the issues covered. In addition, many of the comments are based on the
author’s personal interpretation of the relevant events, statements and
documents, and may differ from the interpretation of others and may be
inaccurate outside the context of this event.
Please note that this presentation was intended to be a general guide
only and further advice should be obtained before taking, or refraining
from taking, any action. Neither the speaker nor MK Brazil accept any
responsibility for any party acting or refraining from acting on the basis
of the information disclosed either orally or in writing during this
presentation.
© M.K.Brazil
O’Connell Court, 64 O’Connell Street, Waterford.
Tel:051 840800 / Fax: 051 - 874504
E-mail: [email protected]
Thank you for your attention.
QUESTIONS?
