The Irish market at the moment appears to be a little Janus-like, something which affects advisers' views on how things are going."There are still very much two economies in Ireland. You have the large multinationals and large domestic firms, and then ...
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The Irish market at the moment appears to be a little Janus-like, something which affects advisers' views on how things are going.
"There are still very much two economies in Ireland. You have the large multinationals and large domestic firms, and then you have the Ireland-only domestic companies who are struggling," explains a partner.
In line with this, some areas of corporate work are starting to show signs of life again, as one adviser says: "There is some M&A activity. Deals are taking longer to do but they are getting done."
Restructurings, including state work, are still high on the agenda, and commentators report pockets of accelerated growth in the food and beverage and aircraft leasing sectors. Intellectual property, subject to very favourable tax treatment in Ireland, remains a big source of work for firms.
In terms of legislative changes, things remain stable. "Nothing significant has changed in terms of the law. The government is committed to the corporate rate," states a partner. It would appear that the government is looking to limit any volatility here too, as a partner explains: "The last finance bill took after Hippocrates – you know, 'Do no harm' – and it didn't."
On the whole, the market views the tax authorities in a good light, despite them, like many others across Europe, having to show a little stringency now to recoup revenues, including in court.
"The authorities are maintaining strong defence mode to defend their interests. They are defending the exchequer aggressively, and become more principled against inappropriate behaviours," says an adviser – another concurs: "We have been seeing more technical objections from a tax authority with a more aggressive position."
"There is an understanding that foreign investment will drive recovery and they want to make Ireland a good place to do business," comments a tax director, and others agree: "In the broad, the government is doing very well in tax, and savvy with regards to FDI. They respond proactively, apply the law, but proactively, to ensure good projects come to Ireland."
In all, there is an air of optimism surrounding the market, summed up well by one corporate tax partner: "There is money to be made! As Rockefeller said, he was rich as he was on the dock with a five dollar bill – he could buy the ship! Wealth transformation happens after a recession."
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