© 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: brendantwohig@mkbrazil.com

Thank you for your attention.

QUESTIONS?