Irish Business Advice from O'Mahony Donnelly» Business News

O’Mahony Donnelly to represent Accountants Ireland in Miami?

michaelomahony — Thu, 22 Apr 2010 15:31:37 +0000

It’s that time of year again and the upcoming annual symposium of Enterprise Worldwide in Miami, Florida on June 16th to 18th. Enterprise Worldwide is the association of International accounting firms of which we have been a member since 2007. The symposium is a huge networking opportunity, a chance to meet old and make new professional partnerships and during the 3 days we will keep updated on best practice, technical and other high performance & leading edge issues. I had a phonecall from a fellow associate yesterday to see if we would be attending the event. As the sole Irish member we would be effectively representing Accountants Ireland to the fellow members, many of whom are US based CPA accounting firms. During the coming days I will be making arrangements to attend what should be a fantastic event in a 1st class location.

Irelands Business Down to 2004 Levels

michaelomahony — Tue, 02 Mar 2010 10:49:35 +0000

Based on an estimate of the CSO’s valuation of what our country produces,measured by GDP, in the 3rd quarter of 2009 this amounted to €32.2bn. Since the figure recorded in the same quarter of 2004 was € 30.8bn this appears to suggest our activity is down to 2004 levels. Further, the fall in GDP since 2007 has amounted to 20%, so if your own business turnover has fallen less than 20% in the last 2 years you are doing better than most. From a survey last autumn conducted for the Department of Finance concluded that 45% of SME’s experienced a turnover fall of more than 20%. source: www.bizplus.ie. It is an interesting exercise to compare your own business results with this ‘national economic benchmark’. Michael O’Mahony FCCA

Budget 2010 Highlights

michaelomahony — Wed, 09 Dec 2009 17:39:34 +0000

Minsiter Brian Lenihan introduced his eagerly awaited budget speech this evening at 3.45pm presented as one with Ireland ‘on the road to economic recovery’, ’signalling to the world that we are willing to put our house in order’ and ‘difficult measures taken by Ireland this year to date have ben commended by international economic interests’. In this light and with a 4billion correction in spending required for 2010 and a target of reducing our deficit below 3% of GDP by 2014 here our the ‘highlights’.

6-9 months timeframe expected to see positive growth in Irish economy
need to compete internationally with export lead growth
income tax system considered to be ‘imbalanced’ and need to simplify and broaden the tax base
from 2011 a new system of social welfare contributions will replace health, prsi and income levies
a new property tax is being planned following recommendations of commission on taxation report
domestic water rates to be introduced
those taxpayers availing of tax incentive schemes the tax free amount is being reduced from € 250,000 to € 125,000 and any excess over this will be taxed at 30% rather than 20% in addition to the normal levies that also apply. (MOM- This will therefore affect clients who avail of artist exemption scheme)
our non- resident tax is considered to be in line with world economies
New tax of € 200,000 per annum on Irish domiciled individuals i.e. those with income greater than € 1million pa and Irish capital assets of € 5 million plus. (This appears to affect non-resident Irish domiciled individuals….therefore for non-domiciled Irish residents there appears to be no changes to remittance basis of taxation……..)
Public servants pay to be reduced between 5 and 15%
cost of living has reduced by 6.5% during last 12 months
child benefit to be reduced by € 16 per child
Employers PRSI exemption will be available to encourage employers to hire unemployed people
Excise duties to be reduced on drink (as a measure to stop cross border trade, which account for 44% of all cross border trade)
VAT rate reduction from 21.5% to 21%
Car scrappage scheme for cars 10 years old in 2010
New credit review system for SME’s making credit applications…with independant review body to oversee and appeals on applications can be made
Agriculture…a new 5 year agri-environment scheme to be introduced (MOM- presumably this to replace the REPS scheme which was discontinued for new enterants after May 2009)
Corporation tax …no change to the 12.5% rate which firmly remains.
Corporation tax …The 0% rate introduced in 2009 to be extended to new companies who begin trading in 2010 (MOM- This is a welcome incentive to business to encourage new start-ups both domestic and international, which can have a spin off effect to the economy in relation to creation of new jobs etc)

I will have more information once the detail unfolds over the coming days and will be happy to update you and answer any questions you may have….O’Mahony Donnelly Chartered Certified Accountants Contact Details

News on Ireland’s Budget 2010

anndonnelly — Wed, 09 Dec 2009 12:07:35 +0000

We will be following the announcement of today’s Budget 2010 online and will be posting updates on our Facebook page and on Twitter. Shortly thereafter we will be posting a more indepth review here.

Click here to visit our Facebook Page

Click here to follow us on Twitter(@omahonydonnelly)

DEADLINE NEAR FOR TAX EXEMPT IRISH LIMITED COMPANIES

michaelomahony — Thu, 12 Nov 2009 14:16:44 +0000

The tax free threshold of 0% corporate tax which applies to Irish Limited Companies that are incorporated and begin trading no later than 31/12/2009 will soon arrive. This deadline is further shortened by the CRO (company registration office) christmas opening times. They can only guarantee new company applications received by 14/12/2009 will be processed before 31/12/2009. To meet the criteria as incorporated and having begun trading during 2009 a tax registration application also has to be submitted. This can only be done after the company is incorporated. It is therefore vital that these applications are made now, preferably in November, to ensure you meet the above conditions.