Structuring

Tax is one of the most important factors to consider when structuring your business.

We are experienced in advising individuals on the options available to them for incorporating their business and how this can be carried out by maximising any tax reliefs or exemptions available. We also provide tax advice on profit extraction to clients who wish to de-risk the investment in their business.

If you are involved in multiple business activities, it may be worthwhile considering the implementation of a corporate group structure. This can be particularly beneficial from a commercial perspective, if you wish to keep certain business activities separate from others.

Irish tax law provides relief on certain transactions between group companies including the following:  

• Capital Gains Tax relief on transfers of assets between group companies
• Stamp Duty relief on transfers of assets between group companies
• Corporation Tax relief for offset of losses against profits of other group companies

We have also assisted clients in implementing group structures where a sale of certain businesses is envisaged in the future. In particular, we have advised clients on the availability of relief from Capital Gains Tax on the future disposal of their business through the “Participation Exemption”.

Restructuring

Many Irish businesses develop and change their activities over time. For this reason, a historical group structure may no longer be fit for purpose.

We have reviewed many group structures for clients and have provided advice on the options available to them for reorganisation. In carrying out this work, we ensure that the options for reorganisation are tax efficient, as well as being aligned with the owners current and future objectives. In most cases, a group reorganisation can result in significant Capital Gains Tax and Stamp Duty liabilities at corporate and/or shareholder level. However, Irish tax law provides relief for certain corporate reorganisations which, if implemented correctly, can be carried out without triggering any tax liabilities.

We have also assisted with group reorganisations involving international companies. In this regard, we have liaised with local tax advisors in different jurisdictions including the UK, Germany, Hungary and the US to ensure that the group reorganisation is implemented without triggering significant liabilities in any jurisdiction.

You may also be preparing for your exit from the business and looking to pass the business on to the next generation or another third party. We can implement a tax-efficient share repurchase or redemption plan that may be eligible for Capital Gains Tax Entrepreneurs Relief, Capital Gains Tax Retirement Relief, or Capital Acquisitions Tax Business Relief for passing a business to the next generation.