Thanks Brendan. I am reasonably well funded in terms of pension and not that far from retirement age. My thinking is that either:Would life not be a lot simpler if you took out the profits for 2023 as salary or as pension contributions thus avoiding Corporation Tax and Surcharges?
You probably need a engage a professional advisor because otherwise you're at high risk of a making a big mess on foot of a basic misconception.Thanks Brendan. I am reasonably well funded in terms of pension and not that far from retirement age. My thinking is that either:
1. I could take dividends in the future when I am taxable at a lower rate/not liable to PRSI.
2. I might be able to avail of Entrepreneur's Relief? Assuming 10% CGT rate the total after tax take would be 78.75% without CT surcharge and 72.85% if it did apply.
3. Leave the company as part of my estate. Either my wife could get it CAT/CGT free or children at 33% CAT.
Sorry if that looks like "amateur hour" tax planning!
Thank you, yes I understand that. Is there a specific misconception evident in the above?You probably need a engage a professional advisor because otherwise you're at high risk of a making a big mess on foot of a basic misconception.
SeveralThank you, yes I understand that. Is there a specific misconception evident in the above?
Thank you. Could you elaborate a little please?Several
I haven't the time, sorry.Thank you. Could you elaborate a little please?
No worries. Anyone else have a view on this?I haven't the time, sorry.
It's all rather complicated.
The following have been deemed to be a profession – an accountant, an actor, an actuary, an archaeologist, an architect, an auctioneer, a barrister, a computer programmer, a dentist, a doctor, an engineer, a journalist, a management consultant, an optician, a private school, a quantity surveyor, a solicitor and a vet.
The following have been deemed not to be a profession – a photographer, a stockbroker, an insurance broker, a pharmacist, a public relations company and a tax agent (who was not a member of a professional body).
Thanks Savvy. I would have been fairly firmly of the view that the company was liable before the outcome of the 76TACD2021. It seems to suggest specific tests to determine what is and isn't a profession or the provision of professional services, for purposes of the surcharge.My problem is that even if a tax advisor gives you the green light, there is nothing to stop Revenue penalising you in the future and you having to take an appeal case. Where due to the vagueness of the legislation you could be found liable for the tax.
You have to weight up is the tax savings worth the potential hassle.
From this link
I don't understand the logic behind the profession decisions. For example how is a pharmacist considered not a profession but an optician is??
2. I might be able to avail of Entrepreneur's Relief? Assuming 10% CGT rate the total after tax take would be 78.75% without CT surcharge and 72.85% if it did apply.
3. Leave the company as part of my estate. Either my wife could get it CAT/CGT free or children at 33% CAT.
You keep saying this Brendan. But no tax advisor will provide such a plan, except possibly at vast cost, to cover the inherent risk whenever the customer fails to follow through on their recommendations, tax rules or wider circumstances change, or something else gets lost in the mist.You should have a written tax plan from your tax advisor which backs up your strategy.
Highly unlikely.Explain how that works ?
You leave your children shares in a company which is stuffed with cash.
They could pay 33% on the value of the shares if they are over the lifetime exemption.
But the cash is still in the company.
Can they liquidate it free of tax?
Brendan
Brendan, I suspect that I may be missing something but as follows:Explain how that works ?
You leave your children shares in a company which is stuffed with cash.
They could pay 33% on the value of the shares if they are over the lifetime exemption.
But the cash is still in the company.
Can they liquidate it free of tax?
Brendan
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