Patrick O Donovan Accountants

Tax Planning / Tax Compliance

In Ireland we are under obligations to pay large and varied amounts of tax. Ireland is in no way a low tax country for the average tax payer. It is therefore imperative that a taxpayer takes the best possible advice to arrange his affairs in the most advantageous way to minimise his overall burden.

On every tax consultant's desk the legislation alone is one foot thick. It also changes every year. It would be impossible to expect taxpayers/entrepreneur to do the requisite three year training to understand the tax elements of this country. In our lifetime everyone in the Republic of Ireland is exposed to Direct taxes in the form of Income Tax, PRSI, USC charge and Capital Gains tax, Capital Acquisitions tax but you may also be exposed to Corporation Tax. Indirect taxes or as we like to call them today stealth taxes are inherently unfair and they are more of them today. They include VAT, Customs duties, Excise Duties, Stamp duties, NPPR, property tax, and the Septic Tank Tax.

Proper tax advice is the key to minimising the burden. We can take our queue from the words of Lord Clyde in the UK Case of Aryrshire Pullman Motor Services V Inland Revenue:

"No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores. The Inland Revenue is not slow, and quite rightly, to take every advantage which is open to it under the Taxing Statutes for the purposes of depleting the taxpayer's pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue"

While it is a UK case it reflects the view commonly held by tax consultants and Irish tax law since the formation of the Republic. In this case we can see the adversarial nature of the tax system in Ireland, which is part of our colonial inheritance form UK rule. One may say that it does not reflect properly the philosophical ethos of a Republic but it is the system we have, and it is imperative to understand it.

All aspects of tax planning and compliance should be discussed with a properly qualified tax accountant/consultant, as the penalties for non compliance can be severe and the burden remains on the taxpayer under Irish legislation. Revenue are not adverse to closing businesses and ceasing property for non-compliance.

To discuss any of the above services or to enquire about other services contact us on (051) 304156 or visit our contact us page.