The Tax Issues Front of Mind as No-Deal Brexit Looms Large

06 September 2019

Ciarán Medlar, Partner & Head of Tax, featured on Business Plus sharing his insight on the commercial tax issues arising from Brexit, tax incentives, and tax planning issues for a business exit.

Brexit

As the uncertainty continues, our clients are trying to prepare for all scenarios. 

The key concerns for our clients are:

  • Changes to corporate tax and taxing rights
  • Increase and administration of VAT & Customs
  • Restrictions on freedom of movement of goods and people between Ireland and the UK
  • New withholding tax on payments between Ireland and the UK
  • Transfer pricing changes
  • Limitation of current EU tax reliefs

It is more critical than ever that Irish exporters prepare for the risk, time and cost of customs checks. We strongly recommend putting together a customs plan, along with a wider VAT, tax and supply chain plan. This plan ensures that the related risks are addressed now and the relevant procedures and simplifications are put into effect to enable the efficient movement and clearance of your goods.

Tax Incentives

I believe the focus of reform should be on ensuring Irish businesses can remain competitive and that incentives are included to encourage businesses to locate and grow in Ireland. For business owners in the SME sector, extension of the current CGT Entrepreneurs Relief is key to encourage continued investment. To facilitate growth, a simplification of the EII scheme for smaller companies.

For Ireland to remain competitive internationally, it is vital that we can attract and retain the best talent. Currently our income tax regime is still seen as a disincentive in this regard.  The current review of the KEEP, SARP and FED is welcomed and will hopefully broaden these reliefs sufficiently.

Business Exit

There are a number of reliefs available to business owners exiting a business under the CGT, CAT and Income tax legislation.

Timely advance planning is key to identify the use of these reliefs to ensure correct current business structure, potential sale strategies, succession planning from within or outside one’s family. Some of the reliefs can be quite complex and can require certain ownership time limits are protected in advance of a sale. 


Content published on Business Plus, September 2019.