PwC’s 4 golden rules (well, for Ireland anyway)

PricewaterhouseCoopers’ in Ireland has issued some golden rules for protecting business and wealth.

Ireland continues to be one of the fastest growing Euroland economies. The PricewaterhouseCoopers recent Economic Outlook projects Ireland’s GDP growth to be 3.5% for 2008. This slower pace of growth compared to recent years is reflective of more modest house prices, lower employment gains, tighter credit conditions and easing export demand. In light of this changing economic environment, it is even more important to manage business fundamentals and protect wealth, in order to secure continued future growth and success. According to PwC, the Four Golden Rules to protect business and wealth are:

• Get the paperwork right;
• Be prepared for a sale;
• Plan for succession;
• Minimise tax.

Speaking at the 2008 Checkout Conference, Teresa McColgan, Tax Partner, PwC Business and Wealth Services, said:

“In a changing commercial and economic environment a renewed focus on the wider business success drivers is needed. This includes standing back from the day to day operations to ensure that efficient business plans, including tax structuring, are in place to maximise future growth. For example, having a tax efficient Will, which is up to date, is critical. We see a greater emphasis on putting this kind of paperwork in place in order to minimise future tax leakage. Other areas for forward planning include: being prepared for a sale, which might involve isolating property assets and general asset reorganisation; having an appropriate business succession plan; and having plans in place to minimise tax when extracting value, ie property assets, cash, dividends or shares, from the business.