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Case Studies

Succession Planning Case study

01

Background

A married couple who were directors of an SME were considering retirement but had underfunded their pensions.

Their two sons were actively involved in the business but there was no plan in place to determine succession of the business.

02

CTS Actions

  • Met with all relevant parties and reviewed all background facts and information including the balance sheet of the company.
  • Prepared a proposal whereby the parents would transfer the business to the children tax efficiently.
  • Prepared the company secretarial paperwork and implemented the proposal in conjunction with the client’s solicitor.
  • Assisted the client’s accountant in follow-up matters and ensured that the transaction was appropriately reflected in the client’s accounts and tax returns.

03

Outcome

The Business was transferred to the next generation in a tax efficient manner while also yielding a tax-free lump sum to the parents for their retirement.

Estate and Inheritance Planning Case study

01

Background

CTS were asked to advise on a sizeable estate with assets in USA, UK and Ireland and beneficiaries resident throughout the world.

02

CTS Actions

  • Reviewed double tax treaties between Ireland, the US & UK.
  • Determined domicile of deceased and related tax position for beneficiary.
  • Liaised with US Executor and corresponded with US Probate O

03

Outcome

CTS secured CAT, CGT and Income Tax clearance for the estate in Ireland, minimising inheritance tax and ensuring final distributions to beneficiaries in a tax-efficient manner.

Structuring Business Sales and Acquisitions Case Study

01

Background

A nursing home owner was contemplating the sale of its business.

There was a complex ownership structure in place, with other business interests in the group and a building in personal ownership.

02

CTS Actions

  • Assessed all existing ownership structures and advised proprietor on the options available in relation to the sale of the business.
  • Assisted on all aspects of the sale including review of Share Purchase Agreement, due diligence, preparation of the company secretarial paperwork, etc.
  • CTS liaised closely with client’s solicitor and accountants during the sales process.
  • CTS, in particular, assisted client in structuring the sale in a tax-efficient manner through a pre-sale restructuring of the business.

03

Outcome

Successful sale of the nursing home business in a tax efficient manner.

Property Transactions Case Study

01

Background

The Client had purchased a large shopping centre complex and subsequently wished to sell a number of units in the complex.

02

CTS Actions

  • Advised on the appropriate structure for the transaction.
  • Advised which entity should be used within the corporate structure to finance the property transaction.
  • Assisted the client in securing bank finance and advised on how the bank loan should be structured tax-efficiently.
  • Provided detailed advice on all aspects, both on the purchase and the sale of the partial interest in the property. In particular, advised on VAT, Capital Allowances, CGT and the Stamp Duty implications for the client.

03

Outcome

Client successfully completed transaction in a tax-efficient manner.

Corporate Structuring/Restructuring Case Study

01

Background

The Client is a family-owned SME in the service sector whose business was growing to such an extent that the existing corporate structure was no longer fit-for-purpose.

The family wished to re-organise the business with a view to business expansion, succession planning and putting in place a non-disclosure structure.

02

CTS Actions

  • Reviewed existing structure and examined the SME’s short and long-term plans for the growth of the business.
  • Determined that a more robust corporate structure was required and we prepared a road map for the transfer of the business to the next generation.
  • Put in place a corporate group with a number of companies within the group, thus removing the requirement to file accounts with the Companies Registration Office.
  • Obtained Revenue approval in advance of the restructuring.

03

Outcome

The revised structure serves the client’s purpose effectively, allowing unimpeded business expansion. There has also been a tax-efficient transfer of a part of the business to the next generation.

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