31 January 2013
IN THIS ISSUE
Introduction
Tax Planning 2013
Getting Back to Basics
Is the Black Economy impacting on your business?
Quintas Quarterly Economic Review
Impact of Gender Neutral Pricing on the Insurance Industry
Recent News
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Introduction
by Fachtna O'Mahony
 

Welcome to our 2013 Winter Newsletter. As we plan and plot our course for another year there seems to be a cautious optimism that in general the worst may be over for the economy and by extension for our businesses and individual citizens. Naturally not everyone is feeling these sentiments and the future holds many difficulties of varying degrees for us all however there is much to be positive about and it does us no harm at all to accentuate the positives and continue to generate some confidence.

  • The 9th Troika Bailout Review is imminent, thus far all has being going according to plan and if that continues this time next year we should be after exiting the programme and be back in charge of our own finances. Very positive indeed provided that there is fiscal discipline.
  • The reorganisation of our financial and banking structures are in the process of being completed leaving us with a far more robust banking system. This process has been painfully slow and has frustrated most businesses, however anecdotal evidence on the ground suggests a more pragmatic and realistic approach is being taken by most banks at present.
  • Economic Data is more positive albeit marginally so. GDP is showing growth, GNP is still showing contraction but if our export market maintains the GDP growth, then GNP should swing positive in the next quarter or so.
  • Some retail sectors had a good Christmas which is a sign of increasing confidence in the domestic economy which will hopefully be sustained throughout 2013.
  • Unemployment figures are falling and while this can be attributed to our “natural release valve” emigration there have been significant job announcements in the latter part of 2012.

I appreciate that there are as many negatives as positives out there at present but 2 years ago we were hard pressed to find any positives. Among my own New Years Resolutions is to accentuate the positives at every opportunity. As some American guy said in College Green recently enough “Whatever hardships winter may bring springtime is just around the corner”.

At Quintas we are working diligently with our clients at the moment on a number of areas, most notably:

  • Bank Debt Restructuring. Some Banks are now willing to “park” some unsustainable debt medium to long term in an effort to assist businesses survive and re-establish themselves.
  • Tax Planning. Substantial value can be lost at present due to rising tax rates and the reduction or indeed withdrawal of some reliefs and incentives. There are significant opportunities to be availed of at present while the government is transitioning our tax system to a broader base.
  • Investment. As the Banks mend their Balance Sheets the deposit rates they were offering to attract deposits has fallen and investors should be looking at better rates of return while at the same time protecting the capital value of their investment. 
  • Revenue Audits. Revenue have stepped up their capabilities and resources over the past year or so and the frequency of Revenue interventions in particular Audits has increased dramatically. A Revenue Audit is a significant risk factor for many businesses and currently we are engaging with clients not only of our own practice but other practices as well to do a risk analysis in this regard.  As a famous Corkman once said “fail to prepare, prepare to fail”.

Among the articles and contributors in this edition of the Newsletter are the following:

  • Sean McSweeney on the Tax Planning opportunities that exist at present to protect against the erosion of your income and wealth by taxation.
  • Tim McCarthy on getting back to the basics of running your business, taking the time out to take the “helicopter view” and review how you go about your business.
  • Mark Ryan on the negative impact the re-emergence of the Black Economy is having on the economy in general and the exchequer
  • James McCarthy on the quarterly economic data and the impact of austerity on our economy.
  • Ian Walsh on the effects of the new gender equality pricing on the insurance industry; how premiums are getting dearer for women but not necessarily cheaper for men.

If I or any of my colleagues can be of assistance to you we would be delighted to receive your call.

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