Friday Funnies: New Incentive Program

About Cooney Carey

We’re a firm of business advisors and chartered accountants. We earn and hold the trust of our clients by proving wisdom and energy.

If you need help with tax or finance, we have the right people for the job.

What Challenges Do You Face?

We are happy to help. Please give our friendly team a call on 01 677 9000. Alternatively, send us an email: info@cooneycarey.ie

To keep in touch, connect with us on LinkedIn.

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    Posted on April 12, 2019 by Cooney Carey

    Consolidated Accounts – Trend Towards Breaking Up Groups

    The Companies (Accounting) Act 2017 has had a big impact on the number of groups required to prepare and file consolidated accounts.  The first wave of companies affected were those with years ending 31 December 2017.

    The old and new thresholds are set out below. The amounts specified are the combined amounts of the holding company and its subsidiaries. Groups that meet two out of three of the size criteria in relation to the current and previous financial years lose or gain the status.

    While the filing in Companies Office of consolidated financial statements allows creditors, employees and other stake-holders gain a financial understanding of the group as a whole, the downside is the higher compliance costs and competitors gaining an advantage.

    Section 357 guarantee

    Under the previous Act, consolidated accounts could be filed in the Companies Office without the requirement to file the stand-alone financial statements of the subsidiaries if a “Section 17” guarantee was provided by the holding company.  The “Section 17” guarantee covered all the liabilities reflected in the financial statements.  “Section 357” now over-writes “Section 17” and the guarantee now covers all commitments entered, not just those reflected as liabilities.  As an example, this now incorporates future lease payments or other similar future commitments and as such is a more onerous guarantee.

    New Interest Deductibility Rules

    Based on the proposals under the EU Anti-Tax Avoidance Directive (“ATAD”), interest deductibility could be limited to 30% of EBITDA and each Group will have a threshold of c.€3m before the limitation rules apply.  More will be known on the EU ATAD restrictions later in 2019.  Its introduction may see Groups being dis-assembled to make the best use of the threshold or creation of new groups.

    Group Directors are examining re-structure options to avoid filing of consolidated accounts and to maximise future loan interest deductions.

    What questions do you have?

    We are happy to help. Please post your comment below or call Paul Leonard, Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: pleonard@cooneycarey.ie

    If this article helped you, please share it with other businesses.

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      Posted on April 9, 2019 by Paul Leonard

      Friday Funnies: A Thought-Provoking Presentation

      About Cooney Carey

      We’re a firm of business advisors and chartered accountants. We earn and hold the trust of our clients by proving wisdom and energy.

      If you need help with tax or finance, we have the right people for the job.

      What Challenges Do You Face?

      We are happy to help. Please give our friendly team a call on 01 677 9000. Alternatively, send us an email: info@cooneycarey.ie

      To keep in touch, connect with us on LinkedIn.

      Share This Post:
      • email
      • Facebook
      • LinkedIn
      • Twitter
        Posted on April 5, 2019 by Cooney Carey

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