Lenavo Ireland, an Irish based Consultancy firm have noticed asteady increase in enquiries from clients on taxation matters in Ireland, an areathat they are not that familiar with and they have contracted you, a Tax Consultant to advice on the following matters;
ISSUE 1
There are a number of tax concepts,residence, ordinary residence and domicilewhich they are finding difficult to understand. Advise the company of the effect of residence, ordinary residence and domicile for an individual's liability to income tax and how to determine whether an individual is resident, ordinary resident or domiciled in Ireland. Provide some brief examples of the effect of each concept and discuss any potential reliefs available.
ISSUE 2
There are various rules for establishing how different sources of income should be charged to tax, to assist in grouping the various rules for different types of income, income is divided into different types of categories called Schedules.As the company have clients with investment income they are particular interested in the concept of passive income. Advise the company of the various schedules and cases and what type of incomeand the treatment of income that each schedule comprises of.
ISSUE 3
Following an announcement by Minister Noonan "Ireland already has one of the more progressive income tax systems in the developed world" the Directors have asked you to is provide an summary report to assist them in their understanding of the concept of the Progressivity and Regressive tax system in Ireland .
ISSUE 4
The company has asked you to advisethem on the concept of Residence of Companies and the implications for an Irish resident company's liability to Corporation Tax. Explain the effect of Company Residence in Ireland in relation to Corporation Tax outliningthe criteria to obtain the 12.5% Corporation Tax Rate and also any reliefs available where Double Taxation Agreements exist.
ISSUE 5
The directors are aware that the preliminary Corporation Tax (PCT) obligations for companies vary depending on the size of the company and whether or not the company is a start-up company.They have asked you to further explain the criteria for determine the size of a company, the payments dates for preliminary Corporation Tax (PCT) and Corporation Tax return dates.
They are also very interested in any availableCorporation Tax Incentives and exemptions for New or Start-up companies
Requirement;
The Managing Director has asked you to consider the facts presented above and revert to him with a report detailing the tax technical issues as specified. He has also asked you to provide some sampleillustrationswhere relevant to support your findings.
Word Limit: 3000 words