Creating, managing and maintaining wealth is a key aspiration for most families. The tax system can be both a help and a hindrance – tax costs can be a barrier but the tax system includes a range of reliefs which may, if used properly, help grow and maintain wealth.
At Crowe Horwath our team of experts have years of experience in advising families in this area and will work with you in getting the most out of the tax system.
Advising family businesses
Family businesses are the lifeblood of the Irish economy and can be real engines of wealth creation. Crowe Horwath has 75 years of experience in advising such businesses and can offer real expertise in such areas as:
- Start-up phase – advising on appropriate structures and available tax reliefs such as the Start-Up Relief for Entrepreneurs (SURE) Scheme and corporation tax exemption for new companies
- Expansion phase – advising on the tax aspects of raising new capital and availing of reliefs such as the Employment & Investment Incentive Scheme (EIIS)
- Expansion into new markets – identifying potential new tax issues and tailored solutions, working with our colleagues across our global network where international tax issues arise
- Realising value – advising on structures that enable family members to access some of the benefits in a tax-efficient manner
- Succession planning – minimising the tax costs of keeping the business within the family. Advising on a range of reliefs that apply on the transfer of such businesses while also creating a tax-efficient retirement fund for the existing shareholders
- Disposal – Where the business is being sold, working with you to obtain the best deal possible at the lowest tax cost
Identifying the best investment opportunities to grow your wealth is challenging enough but with personal tax rates as high as 55%, tax adds a further layer of complexity to the process.
At Crowe Horwath we have a particular expertise in helping clients identify tax efficient investments that reduce their tax burden and optimise their wealth. Our team has many years of experience in:
- Working with clients on their investment strategies with a view to meeting their long-term goals.
- Advising on the tax treatment of various investments products.
- Structuring property transactions in a tax-efficient manner.
- Pension planning.
Transferring wealth to the next generation
Without a good succession plan in place, wealth can be significantly eroded as it passes through the generations and hinder growth prospects for a family business.
Tax costs of course are a key factor, and often a barrier to transferring such wealth. A good succession plan will seek to not only mitigate these tax costs but also address a range of other issues. The ultimate objective will be to put in place a plan that will address the needs of all interested parties, which can include the long-term interests of a business, while also minimising tax costs.
At Crowe Horwath we work with families to:
- Structure transfers of assets in a tax-efficient manner, availing of a variety of reliefs in the tax code for transferring of business assets, farm assets and property
- Put in place succession plans that allow for appropriate timing in the transfer of assets while also minimising tax costs
- Ensure that the long-term needs and interests of the transferors are provided for as they head for retirement
- Address legacy issues such as outstanding debt on property assets in a tax-efficient manner
- Where a business is being transferred, adapt the structures and strategies to enhance the long-term prospects of the business
- Create flexibility by putting in place succession plans at an early stage that can be tweaked over time as circumstances change
- Take step to avoid disharmony in future by assisting with the negotiation and drafting of agreements between family members and between shareholders in family businesses
- Ensure that tax costs are provided for and advising, where relevant on putting in place an insurance policy to cover them
Many of the tax exposures and reliefs are well known. What really sets Crowe Horwath apart is our ability to tailor the use of the reliefs and put in place structures that allow the needs of the various parties to be met. Crowe Horwath can draw on 75 years of advising family clients on these matters and our team is well versed in devising innovative solutions to these challenges.
Personal Tax Compliance Services
We provide a range of personal tax compliance services to support the needs of our personal tax clients. As a private tax client of our practice you can expect to receive the following tax compliance services:
- Preparation and submission to the Revenue Commissioners of your Irish Income Tax returns – from basic tax repayment claims to complex personal tax returns
- Preparation of your self-employment and rental accounts to calculate your tax adjusted profit/loss position
- Provision of guidance to you in relation to complicated rules and legislation that makes up the self-assessment regime
- Liaising with the Revenue Commissioners in respect of your tax affairs
- Calculation of your income tax liability (or refund) and notify you of when any payments are due, both preliminary tax payments and balancing payments
- Preparation of your Capital Gains Tax and Capital Acquisitions Tax computations as well as the provision of advice to your regarding the availability of certain tax reliefs
- Preparation and submission of CAT Gift and Inheritance Tax returns (Form IT 38)
- Preparation and assistance in advance of Revenue Audits
- Advising on your obligation to disclose tax planning schemes and capital transactions to the Revenue Commissioners and completion of any necessary forms
- Advising on how to maximise the availability of tax reliefs and allowances in the most tax efficient manner
- Home Renovation Incentive Scheme – Assistance with the submission to the Revenue Commissioners of HRI claims
- Assistance with the submission and payment of your Local Property Tax liability
- We can also offer you a full international tax compliance service via our Crowe Horwath International network