Tax, Ireland

Overview

“ Eversheds Sutherland has a growing presence in the tax sphere, notably in advising on holding company structures, M&A and corporate restructurings. It has strong sector experience in the structured finance, funds, renewable energy, real estate and aviation industries, and has built an established tax team in Dublin that routinely links with colleagues in the UK and other international offices. The firm has worked on a series of renewable energy projects, involving complex tax elements and is further active in financial services-related activities in Ireland. ” – Legal 500

Ireland is widely acknowledged as being one of the pre-eminent countries in and from which to do business in Europe and beyond. As a member of the European Union (“EU”), which offers the free movement of goods, people and capital within the EU, Ireland represents an attractive onshore location, with a prudent but flexible regulatory environment and offers a competitive physical and commercial framework in which to do business. Irelands success as a location for foreign direct investment, particularly for U.S. corporations, has been driven by its competitive tax regime and extensive double tax treaty network. Ireland has a very tax efficient regime for international financial services companies and particularly, in the area of funds where it is a favoured jurisdiction for the administration and management of funds in Europe. Regulated funds are generally exempt from Irish tax at the fund level and a number of exemptions exist for re-domiciling funds to Ireland. There is also a very efficient regime for structured finance transactions including securitisations, aircraft leasing and other asset financing. All of these factors leave Ireland ideally placed to provide a low corporation tax rate profit centre for the European / EMEA operations of multinational companies.

Our Tax Group creates innovative client-focused tax solutions which enable our clients to achieve maximum tax efficiency, while benefiting fully from Ireland’s attractive tax regime. Being the Irish member of Eversheds Sutherland means we are the only Irish law practice that can offer clients an internal seamless multi-jurisdictional tax advisory service with a single point of contact. We have considerable experience handling matters for a diverse client base, including multinational and domestic corporations, financial institutions, investment funds and start-ups. We provide advice on a broad range of corporate transactions, ranging from company acquisitions and restructurings to complex cross border mergers and asset financings. Our Tax Group has traditional strengths in corporate finance, corporate migration, mergers and acquisitions (“M&A”), employment tax, real estate, investment funds and international tax. Clients benefit significantly from the deep technical experience and global reach of Eversheds Sutherland combined with the in-depth local knowledge of the Irish Tax Group.

Corporate Tax

Our corporate tax team is highly experienced in structuring and executing corporate transactions. We advise leading domestic and international corporations across all forms of corporate transactions including:

• inward investment into Ireland;
• international tax and cross-border transactions;
• M&A;
• private equity;
• joint ventures;
• partnership structures;
• management buy-outs and buy-ins;
• corporate reorganisation / restructuring;
• demergers; and
• initial public offerings (“IPOs”) and secondary offerings.

The volume and complexity of new tax legislation impacts on all areas of corporate activity. Our Tax Group navigates through the maze of legislation to identify risks and provide client-focused solutions. Our integrated project-management approach, coupled with Eversheds Sutherland's international network of tax professionals, allows us to seamlessly generate solutions to our clients' domestic and global corporate tax challenges.

Financial Services Tax

We have extensive experience in advising financial services operations on establishing operations in Ireland. These include:

• securitisation vehicles availing of the specific regime available for a wide variety of structured finance transactions;
• asset and project finance for both international and domestic aircraft and equipment;
• mutual and hedge funds on the exempt regime for regulated funds;
• Irish real estate funds on the new 20% withholding tax on specified distributions; and
• Irish REITs.

We have advised a number of international corporates on establishing treasury operations for conducting inter-group financing and also investment firms and banking operations on establishing operations in Ireland for global trading through an Irish regulated subsidiary, including, operations with international branches availing of the 12.5% rate of corporation tax with respect to profits derived in Ireland, with a credit for foreign branch taxes. This work typically involves us devising the optimum tax structure for the operation / transactions, advising on the set up phase and ultimately on its implementation.

We also advise domestic lenders and investors on tax structuring, re-financing and related tax documentation.

International Tax Issues

We have advised a number of high profile clients on a variety of domestic and cross-border matters involving the restructuring of global supply chains, the application of the dividend, interest and royalty articles in double taxation treaties, withholding tax clearance matters for domestic interest and dividend payments and numerous permanent establishment matters.

Employment Tax

The retention and motivation of employees is a key consideration for many domestic and international businesses. In an increasingly global economy, tax-driven remuneration structures are important. The disclosure and governance rules regarding executive compensation and incentive plans have grown ever more complicated and now require close scrutiny. Working closely with our pensions and employment law colleagues, our employment tax team has extensive experience of advising on tax efficient remuneration structures including:

• cash bonus arrangements;
• employee share / options based remuneration schemes;
• long-term incentive plans;
• salary sacrifice arrangements; and
• other flexible benefit schemes.

Once we have found the right business solution for your company, we will work with you through every element of the implementation process from design, obtaining approvals from the Revenue Commissioners, gaining shareholder approval, through to the actual grant / exercise of awards.

We have particular experience in advising expatriates and companies on relocation. We regularly advise on how overseas secondments can be structured to minimise tax in Ireland and overseas. We also consider the effectiveness of consultancy arrangements for tax purposes and the risks involved to both consultants and employers who participate in such arrangements. We also advise on tax efficient termination of employment arrangements. For clients with an internal tax resource, we regularly provide second opinions on specific planning ideas.

Value Added Tax ("VAT")

Every business transaction in the EU and much of the wider world has VAT implications. VAT is no longer a very straightforward tax. The rules are complex and ever-changing. The details of a transaction or project will impact directly on its VAT treatment and – because it is charged between the parties to a transaction – this is a tax where decisions have to be taken quickly and where errors need to be resolved with the other party, not just with the Revenue Commissioners. These factors alone make VAT a significant area of business risk.

We offer VAT advice on cross border supplies of goods and services and on all forms of financing, corporate and real estate transactions. We act for various consortia comprising Irish and international investors in relation to the acquisition and disposal of Irish commercial property portfolios. We help to structure deals to manage or minimise VAT liabilities, and to ensure that the commercial risks are covered off.

We also provide contentious and advisory VAT advice, having represented clients in a broad range of cases. Overall, our role is to make sure that VAT and indirect taxes do not get in the way of our clients doing business.

Real Estate Tax

In today's real estate market, the increasing emphasis on innovative structuring and funding vehicles makes tax issues a key component of all types of real estate transactions. Our real estate tax team will identify the tax issues and find practical solutions. We advise on a broad range of direct and indirect taxation issues including:

• establishing funds;
• joint ventures;
• real estate securitisation structures;
• limited partnerships;
• unit trusts; and
• special purpose vehicles.

We work as a team with our real estate, funds and finance colleagues to deliver a joined-up approach from the initial structuring advice to the final sign-off on agreements.

Tax Controversy and Tax Litigation

We have extensive experience in conducting tax litigation including negotiations with the Revenue Commissioners, appeals before the Appeal Commissioners and tax efficient dispute resolution. This includes:

• risk assessment and implementation of strategic measures;
• mutual assistance procedure;
• correlative adjustments; and
• transfer pricing adjustment.

Working closely with our well regarded litigation team, we have been heavily involved in some recent high profile tax litigation matters. We provide focused guidance to our clients early in the tax controversy process to protect their litigating position while taking advantage of the procedural alternatives available.

What others say about us

“Eversheds Sutherland’s esteemed tax practice is renowned for holding company structures in Ireland, and restructurings for complex cross-border mergers. The firm is active in finance, real estate, and renewable energy. The full-service Irish law firm offers a rounded multijurisdictional advisory service. Tax planning specialist Alan Connell is managing partner and head of tax, supported by one partner and two senior associates” – ITR World Tax

"We are definitely satisfied with their performance and they've been very helpful. It's nice to have integrated solutions, and they are able to bring the corporate and tax teams together to offer clients integrated delivery." - Chambers Europe

‘This team was introduced later in to our transaction process as we were using other advisors at the beginning. The difference in service that the Eversheds tax team provided was far superior and especially so with regard to advice with liability exposure.’ - Legal 500

‘The team is very professional and solutions driven when it comes to client requirements. They are very approachable and willing to talk to clients before a formal engagement is in place which is not often the case with other firms.’ - Legal 500

‘The Eversheds Tax Legal Team, and in particular Alan Connell and Melissa Daly, have been an enormous help to our company. They’ve come up with innovative solutions for our VAT tax, entity expansion, and international development in the EU with regard to IP. I highly recommend them. They alert us to new legislation and also reach out routinely to make sure that everything is handled well. ’- Legal 500

‘Alan Connell (managing partner and head of tax) has expertly led the team which has advised our business on all tax matters since we first became a client of the firm. Alan is an excellent partner, with in-depth experience, whose dedication to, and intimate knowledge of, our business through his involvement in our deals over the years means that he is a trusted advisor to our business.’ - Legal 500

'Eversheds Sutherland handles tax issues related to acquisitions, investments and financing, often involving funds and private equity elements. The law firm is knowledgeable in stamp duty topics and on the tax aspects of real estate transactions. Eversheds Sutherland boasts a strong capacity for cross-border work, particularly between Ireland, the USA and the UK. A client reports that the firm "makes our lives easier by being proactive.' - Chambers Europe

‘ Expert tax advice which is business focused, clear and succinct.’ - Legal 500

‘Very commercial, responsive and knowledgeable.’ - Legal 500

‘The firm has very qualified people in their respective fields who can provide expert advice and analysis quickly to the client. They also have the ability to reach across various jurisdictions to obtain the correct answer for the client on a consistent basis. They also take the time to make sure they explain properly the options for the client.’ - Legal 500

‘The team are responsive and supportive – they take the time to fully understand the issue. When time has been critical they have suggested ways in which they could give the business additional comfort.’ - Legal 500

‘The team always provide excellent tax advice and breaks it down into manageable and understandable pieces for people such as our HR team, who do not have a background in tax. The ability to build relationships with clients and have a very friendly and approachable manner most definitely encourages our business to contact Eversheds for help and support when required. I don’t think this ability can be underestimated.’ - Legal 500

"Eversheds Sutherland‘s ‘strong‘ team is particularly experienced in advising large domestic and international corporations and financial institutions, assisting with the tax aspects of establishing operations in Ireland and cross-border restructurings and M&A. It also advises on internal reorganisations, including the onshoring of IP, high-profile Irish investment projects, indirect tax, transfer pricing and tax disputes. Key sectors include renewable energy, real estate and financial services.‘- Legal 500

" Excellent‘ practice head Alan Connell focuses on advising international clients, with particular expertise in inward investment and restructuring projects in Ireland. ‘- Legal 500

‘Alan Connell is an excellent partner who makes complex issues clear. We appreciate him for his strategy and insights.‘ - Legal 500

" Alan Connell and his team have a great focus and always come prepared to help solve the issues." - Legal 500

"efficient and thorough" - Legal 500

" They are very pragmatic and they have a good relationship with the relevant authorities so they can give you the quick answers you need ”. – Chambers Europe

"'Strong team with a great understanding of the client’s needs and the subject matter" - Legal 500

‘Alan Connell is very knowledgeable, client-focused, and practical in his approach. It is a pleasure to work with him.‘ - Legal 500

“ The firm was responsive, well prepared and got the right answers. The lawyers didn’t use tax-specific jargon and were easy to talk to ”. – Chambers Europe

Alan Connell is widely acclaimed as “ an excellent corporate tax adviser ” who “ covers a range of issues, including inward investment projects and corporate restructurings ”. - Chambers Global

‘‘Eversheds Sutherland deliver what we need articulately, quickly, and responsively." - Legal 500

Alan Connell is highly regarded for “advising international corporations on conducting business in Ireland. He has particular expertise in inward investment projects, cross-border tax planning and public and private M&A.” – Chambers Europe

Alan Connell provides solid advice on all corporate tax matters, including inward investment projects and restructurings. Clients praise Alan as being “ extremely knowledgeable of how his work will impact our company. He is also friendly and cordial and always available ”. - Chambers Global

"The advice provided was comprehensive, practical and delivered in a manner that was easy to comprehend." - Legal 500

Clients single Alan Connell out as being “ very knowledgeable on tax ” and who “ poses different ideas to work with and understands multinational needs of US operations and various structures .” - World Tax

“ In addition to his broad corporate tax practice, Alan Connell advises on Irish stamp duty matters, especially in the context of worldwide reorganisations. His reputation continues to grow in the market and he is fast emerging as one of the foremost practitioners in the market .” - Chambers Global

Alan Connell was recommended as a 'Leading individual 2023' in the 'Legal 500 EMEA 2023 edition'.