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Increase in Tax for Limited Companies?

January 13, 2010

There’s a report on the front page of the Sunday Business Post this Sunday that the government are going to clamp down on sub-contractors and consultants who offer their services through a limited company.

The use of a limited company has been a tax-saving device that has been used for years. Limited companies are taxed at 12.5%.  I know that the government is aiming to catch individual sub-contractors / consultants.  But how do you distinguish between one person who is, say, a software engineer who trades via a limited company and two (or three) people who are software engineers who trade through a limited company?  Both sets of people could even be supplying services to the same customer. Will Revenue insist on seperate Income and Expediture accounts being submitted? Will it be necessary to apportion overheads – rent, rates, electricity – between them? Or will Revenue leave them alone because, with two or three individuals, it becomes more complicated?

It may be easy to get behind the ‘veil’ of limited liability in the case of one person, but much more difficult in the case of three people.  Will there be a constitutional challenge from an individual who operates through a company?  A barrister friend of mine thinks there will.  Or will there be some simple other way to reduce his/her tax?  Probably the latter, maybe by joining with two other software engineers!

 Denise Ryan

 

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Méadú Cánach do Chuideachtaí Teoranta?

January 13, 2010

 Bhí tuarisc ar leathanach tosaigh an Sunday Business Post Dé Domhnaigh go bhfuil an Rialtas ag lorg níos mó cánach ó fho-chonraitheoirí agus comhairleoirí a chuireann a gcuid seirbhísí ar fàil trí chuideachta teoranta.

Baineadh úsáid as an chóras seo leis na blianta chun cáin a laghdú.  Tá ráta an-íseal ag cuideachtaí – 12.5%.  Tá fhios agam go bhfuil sé d’aidhm ag an Rialtas dul taobh thiar den chóras seo maidir le fo-chonraitheoirí nó comhairleoirí a oibríonn gan fostaí ar bith eile sa chuideachta, seachas an fo-chonraitheoir nó an comhairleoir féin.  Ach cén chaoi a dhéanann tú idirdhealú idir duine amháin atá, cuir i gcás, ina innealtóir agus cuideachta aige, agus, abair, triúr innealtóirí ag obair le chéile agus cuideachta amháin acu?  B’fhéidir go gcuireann an dá chuideachta seirbhísí ar fáil do na custaiméirí céanna!  An mbéidh ar mo dhuine a oibríonn leis féin níos mó cáin a íoc?

Tá chuile sheans ann go mbeidh sé éasca an córas nua cánach seo a thabhairt isteach, fhad is atá muid ag caint faoi dhuine amháin, ag obair leis féin, i gcuideachta amháin.  Ach beidh sé i bhfad níos deacra i gcás beirt nó triúr.  An gcuirfidh an Rialtas iallach orthu costaisí na cuideachta – cíos, rátaí, leictreachas – a roinnt eatarthu?  Nó an ligfidh an Rialtas dóibh, toisc go bhfuil sé ró-dheacair dul i ngleic leis an fhadhb chasta seo?

An mbeidh dúshlán bunreachtúil ann mar gheall ar seo?  Bhí mé ag caint le hAbhcóide inné agus bhí sí den tuairim go mbeidh.  Ach sílim féin go mbeidh bealach i bhfad níos easca chun an fhadhb seo a réiteach.  Bheadh sé easca don innealtóir aonarach sin dul i gcomhpháirtíocht le beirt eile!  B’fhéidir!

Denise Ní Riain

NA NAMA NA – DO DO, DO-DO DA

January 5, 2010

Has Brian Lenihan completely lost the run of himself?  Paying more for an asset than it is currently worth.

Next time he goes to an art shop to buy a work-of-art, will he look on the sales ticket and then go up to the desk and enquire what the price will be in five year’s time? Will he hell?

Next time he goes to the car dealer to buy a car, will he tell the salesperson that he will only pay what the car is going to be worth in five years time?  Let’s all laugh together!

So where is the logic in paying a future value for a bank’s asset?

Ok, the banks need to be re-capitalised.  So re-capitalise them!  Give them the money as capital – ordinary shares, preference shares, A shares, B shares, call them what you like, but make sure you get a dividend on these shares and that you can sell them, or get them repaid at some time in the future.

Hey! Brian! By the way, I have this Accountancy Practice that I want to sell …

Maureen Golden

NA NAMA NA – DO DO, DO-DO DA

January 5, 2010

An bhfuil Brian Ó Lionnacháin as a mheabhar?  Tá súil agam nach bhfuil.  Ach céard tá ar siúl aige?  Ar tháinig Daidí na Nollag go luath i mbliana?  Tá fhios aige an praghas atá ar shócmhainní na mbanc faoi láthair.  Tá muid ar aon intinn faoi sin.  Ach cén fáth a bhfuil praghas níos mó á íoc ag Brian ar na sócmhainní sin?  Ní thuigim é sin.

An chéad uair eile a théann sé isteach i siopa ealaíne chun píosa ealaíne a cheannacht, céard a dhéanfaidh sé?  Breathnú ar an ticéad a bhfuil an praghas air agus ansin dul chuig an cuntar agus fiosrú ón díoltóir cén praghas a bheidh ar an phíosa faoi cheann cúig bliana?  Céard do bharúil?
An chéad uair eile a théann sé isteach i seomra taispeántais carranna ag iarraidh carr a cheannacht, céard a dhéanfaidh sé?  An ndéarfaidh sé leis an díoltóir go n-íocfaidh sé an luach a bheidh ar an charr faoi cheann cúig bliana?  Guímís!

Cá bhfuil an chiall san íocaíocht breise a bhfuil Brian ag tabhairt don na bainc?  Níl sé ann.

Aontaím go bhfuil gá ann níos mó caipitil a chur isteach sna bainc. Ach is féidir é sin a dhéanamh ar bhealaigh eile. Mar shampla, cuir an t-airgead isteach i bhfoirm scairchaipitil – gnáthscaireanna, scaireanna tosaíochta, A scaireanna, B scaireanna.  Is cuma cén t-ainm a chuireann tú othu, ach bí cinnte go bhfaighidh tú díbhinn ar na scaireanna uilig gach bliain agus gur féidir leat iad a dhíol sna todhchaí, nó ar a laghad, aisíoc a fháil orthu am éigin.

 Brian, a chara!  Tá Chleachtas Cuntasaíochta á dhíol agam …

Maureen Ní Ghóillín

Scrap the Scrappage Scheme

December 14, 2009

What is the point of bringing in an incentive to buy new cars, even if the cars are energy-efficient?

True, it is happening in Britain, France and Germany and it is successful there.  But there is one big difference between these countries and Ireland.

Britain, France and Germany have car manufacturing industries.  Ireland doesn’t.  Every car that is bought in Ireland means that more money leaves the country.  A good idea?  I don’t think so.

Yes, a lot of money goes to the government (VAT and VRT). Yes, there will be more people working in the car showrooms and more PAYE for the government.  But the people who benefit the most are the car manufacturers, none of which are in Ireland.  Therefore our imports increase.

Whatever happened to the measurement that was known as the Balance of Payments?  Where is it gone?  Bring it back!

By bringing in the scrappage scheme the government is returning to its old ways, the ways that brought us to our knees financially.

The logical next step!  Encourage the public to go out and borrow more from the banks in order to buy these imported cars!! I don’t think so.

If you borrow, make sure you borrow from an Irish bank!  You’ll be contributing in two ways – you won’t be sending more business overseas and you will be reducing our need, as a nation, to invest more in such banks.  Great!

Laura O’Toole

Níl aon Chiall le Scéim Bhriseadh na gCarranna

December 14, 2009

Tuige ar tugadh an scéim seo ar ais?  Bhí sé againn cheana le linn an Tigéir Cheiltigh agus chuidigh sé linn na caisleáin eacnamaíochta a leagan ina bhfothracha.  Fiú má tá na carranna éifeachtúil ó thaobh fuinnimh de, níl aon mhaitheas fadthéarmach sa scéim seo.

Cinnte, tá a scéim chéanna acu sa Bhreatain, san Fhrainc agus sa Ghearmáin agus tá siad ag baint leas aiste.  Ach tá difríocht mhór idir na tíortha sin agus Éirinn.

Tá tionscail déantúsaíochta carranna sa Bhreatain, san Fhrainc agus sa Ghearmáin.  Níl in Éirinn. Ciallaíonn sé sin go mbíonn orainn gach carr a cheannaíonn muid a iomportáil.  Agus chiallaíonn sé sin go dtéann an chuid is mó den airgead a chaitheann muid ar charranna thar lear, ag cuidiú le forbairt eacnamaíocta tíortha eile.  An shin an plean?

Cinnte, téann a lán den airgead isteach i gciste an rialtais (CBL agus CCF).  Cinnte, beidh níos mó daoine fostaithe sna seomraí taispeántais agus béidh ÍMAT á íoc acu agus níos mó airgid arís ag dul isteach i gciste an rialtais.  Ach sé an dream a bhaineann an leas is mó as, ná na déantúsóirí carranna agus níl aon cheann acu in Éirinn.

Céard a tharla do Chomhardú na n-Íocaíochtaí?  An bhfuil duine ar bith sa Rialtas ag coinneáil súil air?  An bhfuil sé imithe mar thomhas ar an staid eacnamaíochta?

An bhfuil an Rialtas ag dul ar ais go dtí na polasaí millteacha a tharraing an cúlú eacnamaíochta orainn?

Céard é an chéad chéim eile a mholfaidh an Rialtas – an dtabharfaidh siad gríosú don phobail dul amach agus iasachtaí a fháil ó na bainc, mar a rinne na daoine cheana agus an dallamullóg orthu?

Comhairle!  Má fhaigheann tú airgead ar iasacht, bí cinnte go bhfaigheann tú é ó bhanc Éireannach!  Béidh tú ag cur le leas eacnamaíochta na tire seo ar dhá bhealach – ní bheidh tú ag seoladh níós mó gnó thar lear agus beidh tú ag obair ar mhaithe na n-íocóirí cánach uilig mar tiocfaidh laghdú ar an méid a bheidh orainn (mar náisiún) a íoc leis na bainc sna am atá le teacht!

Laura Ní Thuathaill

Scrap the Budget

November 30, 2009

So it’s nearly Budget time again.  What a waste of time! And money! 

How many annual outcomes have turned out exactly as Budgeted?  None!

How many Departments are now desperately and foolishly trying to spend the money, that they have been ‘allocated’, before the end of December.  Why?  Because, if they don’t spend it, they won’t get the same allocation next year.

And it is not just the State that foolishly keeps on budgeting.  How many businesses in the private sector do it as well with the same silly notions – each department spending their allocation before the year-end?

Take this example: if you were Head of the Marketing Department and your Sales budget was €500,000 per month.  Let’s suppose that you had reached your budget for the current month and you get another contract just before the month-end for €300,000.  What do you do?  Report €800,000 as contracts achieved in the current month?  Not on your Nelly!  What you do is make no mention of the new contract for €300K and you slot it quietly into the following month.  Now you’re more than half-way there towards achieving next month’s budget.  Am I right or am I right?

On and on it goes.  When are we going to give up budgeting?

Cyril McGinty