Corporation
Tax
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.
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