The recent past has seen the number of trading companies in operation in the State multiply.
While the rates of corporation tax have fallen to 12.50%, making the operation of a trade through a company now more attractive than ever, the higher rate of 25% applies to certain non trading income, and this income must be must be accounted for correctly. In these cases, where possible, action should be taken to reduce excess liabilities.
The Finance Acts have introduced amendments to the obligations on companies in relation to taxation filing requirements. Corporation Tax payments have been accelerated putting additional pressures on the cashflow of companies and reinforcing the need for proper accounting and bookkeeping structures.
We can assist directors of companies to ensure that the company tax obligations have been fully adhered to and where possible, planning techniques have been put in place.
The directors of Property Companies (due to the special nature of these companies and the different regime in which they operate) should be aware of the relevant rates of Corporation Tax and Income Tax applicable to property development. They should ensure that proper planning techniques have been put in place from the beginning of a development to ensure minimisation of tax payable and consequently, the highest after tax profits for the developer.