4 July 2012
Quintas Quarterly Newsletter - Summer 2012
Introduction - "What Summer?"
EU Summit
Irish Commercial Property Market (ICPM)
Quintas Quarterly Economic Review
Succession Planning
Recent News
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Quintas Quarterly Newsletter - Summer 2012
Introduction - "What Summer?"
by Fachtna O'Mahony
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It’s fair to say that the weather reflects the national mood at present. Indeed there’s a strong correlation between the weather and the economy at present, raining everywhere, localised flooding but very occasional bright spells in remote areas. Despite the undoubted difficulties facing us collectively and individually there are some positive signs imitating from some quarters and I for one would rather expend my time and energy hanging my hat on some of the positives and “fanning those flames” rather than focusing on the negatives.

It’s always good to talk, and I had a very interesting chat with one of our clients Dr John Gallagher of Employment Health Advisors recently. John and his partner Dr Martin Hogan operate as occupational health advisors and performing medicals for recruitment would be a large part of their business.  They are very astute businessmen well able to “read the business tea leaves” as we like to put it. They explained to me that from August’07 to April’08 was their worst period in business. This is hardly a surprise as hindsight has taught us that the recession technically started in July’07 even though in was around April’08 before many if not most started to take notice. Essentially this indicates that their business is “at the coalface” and is a decent barometer of the wider economy. They ended our chat by saying that right now they are working flat out trying to keep up with their work, a positive indication of the recruiting that’s going on at present which is positive for the wider economy late this year or early next year.  

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EU Summit
by David O'Shea
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At last Friday’s summit the European Union made its strongest statement to date on its level of commitment and tools it would employ to provide support for ailing Sovereign states (i.e. individual countries) and undercapitalised banks. 

After months of procrastination the move exceeded market expectations.  It set out provisions for the direct recapitalisation of the banking sector in the clearest signal yet that Europe will provide support for the ailing European banking system directly without leaving the entire burden onto the Sovereign.  This is important as it represents the first steps disentangling the finances of banks from the countries that they are domiciled in.  It also highlights the realisation that the European banking system is indeed just that – a European wide system that crosses borders and acknowledges that when events such as the current crisis occurs it is simply not reconcilable to the Union’s founding principles to allow Sovereign states to pick up the bill for a European wide system failure.  Improved and centralised regulation of the banking system will now follow and this should lead to improved integration of Central Banks and a clearer definition of the balances and checks needed to avoid future crisis. 

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Irish Commercial Property Market (ICPM)
Turn the Crisis into your Opportunity
by Kenny Kane
Kenny Kane

In this article we review the dramatic changes in the ICPM (shops, offices, industrial units, hotels and development land) over the last 5 years and the opportunities arising therein.

The ICPM collapsed between 2007 and 2011 with values falling from between 50% (select offices) and 95% + (development land).  In 2007, total turnover in the ICPM was c. €2.5bn with this reducing by c.99% to c. €25m in 2011. The 2011 figure excludes the Google and Penny’s transactions with NAMA.

There are a number of reasons behind the dramatic fall in the ICPM including:

  1. Lack of domestic and international confidence
  2. Reluctance to buy in a falling market
  3. Illiquid banking market
  4. Debate on upward only rent reviews (UORR).

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Quintas Quarterly Economic Review
by James McCarthy
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The prospect of a Euro break up has again become a concern for people over recent weeks. In Spain, after receiving a bank bailout, their cost of borrowing reached 7%, the territory where it becomes unsustainable to borrow. In different Eurozone countries there are different dynamics at play. Spain is currently in the spotlight over the weakness in its banking system, while in Italy the main concern is over its massive debt pile of almost €2 Trillion. The uncertainty over the outcome of the Greek election and whether or not there would be an exit from the euro and any knock on consequences has put the future of the Euro back in the spotlight. 

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Succession Planning
by Sean McSweeney
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Planning for succession is critical and even more so in the current economic climate, given the changes already introduced and the further changes likely to be introduced by the Government in an effort to increase the tax take from Capital Acquisition Tax (i.e. gift inheritance tax).

Increase in Capital Acquisition Tax (CAT)

CAT has been an easy target for the Government to increase taxes. In the past 4 years, the CAT has increased by 50% from 20% to 30%, while at the same time the Parent Child tax free threshold has decreased by over 50% from €521,208 to €250,000. These changes have significantly lowered the entry level for CAT and therefore the incentive to maximise reliefs is more prevalent.   

In addition to these changes, there have been clear indications that the benefit of the favourable reliefs such as CGT Retirement Relief, CAT Business Relief and CAT Agricultural Relief are likely to be reduced. These changes have begun in Finance Act 2012, with a limit of €3m being introduced from 1 January 2014 for transfers to children where the parent is 66 or over.

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Recent News
by Sarah O'Neill

Quintas Announce Merger

l-r Alf Smiddy, Chairman, Quintas; Yvonne Barry, Partner, Quintas; Fachtna O’Mahony, Partner, Quintas; Tim McCarthy, Managing Partner, Quintas

Pictured l-r: Alf Smiddy, Yvonne Barry, Fachtna O'Mahony, Tim McCarthy

In May 2012 we were delighted to announce a merger with DMB & Co. Chartered Accountants.  DMB & Co specialise in Business Start Ups, Finance, Business Planning, Systems Implementation and Corporate Restructuring. 

To view further details on this announcement please click here.

Quintas Launch Two New Websites

We are delighted to announce the launch of our two new websites:

This site is a dedicated to the Audit, Tax and Advisory service offering departments of Quintas.   As part of the new website launch we are pleased to offer our clients the opportunity to showcase any business achievements on the news section within the site.  If you are interested in availing of this please email Sarah O'Neill at soneill@qwm.ie

This site is dedicated to the Wealth Management division of Quintas which offers services in the following areas: Pensions & Protection, Investments, Consultancy, EIICompliance Consultancy.

We would be delighted to receive your feedback on the websites so please feel free to email us at info@qwm.ie.

Quintas Wealth Management and IFG Corporate Pensions

hosted a  Breakfast Seminar on 30th May 2012

l-r Fionan O'Sullivan, IFG, Jim Power, Friends First, Kenny Kane, Quintas Wealth Management

Pictured l-r: Fionan O'Sullivan, IFG, Jim Power, Friends First, Kenny Kane, Quintas Wealth Management

On Wednesday 30th May, Quintas Wealth Management and IFG Corporate Pensions co hosted a breakfast seminar entitled 'Breaking the Mould - A New Strategy for Retirement Benefit Provision'.  Jim Power, Chief Economist of Friends First was guest speaker at the event where over 70 people from the Cork and Munster region attended.

For further details on this event please click here.

Congratulations to Quintas Staff Members on their recent Weddings!

  • Margaret Lenihan of the Quintas SME team married Gary Feehely on 2nd June 2012 at St Micheals Church, Upper Glanmire
  • Pictured below is Eddie O'Brien of Quintas and his wife Heather Hennessy with Pat Shortt himself outside Pat Shortts Pub, Castlemartyr

Eddie & his wife with P Shortt

Succession Planning

On Wednesday 30th May, Sean McSweeney, Tax Director at Quintas gave a presentation on 'Succession Planning' to our business contacts based in Kerry. 

To view further details on the event please click here.

Junior Certificate Business Studies Revision Course

Study Time Pic

On Friday evening the 23rd March and Saturday morning the 24th March, Fachtna O'Mahony gave a free Junior Certificate Business Studies revision course to kids of our clients and business contacts.  The revision course went really well with over 25 students in attendance over the two days. 

We'll be likely to run the course again next year so keep an eye out for further details nearer the time if you'll have a Junior Cert student sitting the exam in 2013.

Quintas Blog

To view some of our recent blog posts, please click on the links below:

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