Practice News Archives - Page 3 of 14 - Kelly Rahill Accountants

Government to borrow up to €4bn today on the markets

THE Government is to borrow between €3bn and €4bn on the bond markets today, the Irish Independent understands.

Plans for a bond sale were announced yesterday by the National Treasury Management Agency (NTMA), but the agency did not specify the size of the sale and said only that it would take place “in the near future”.

Bond yields are at historic lows so the sale will result in cheap funding for the Irish taxpayer over the next seven years, according to Cantor Fitzgerald Ireland’s head of fixed income strategy, Ryan McGrath.

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Mortgage arrears may be caused by Irish banks’ leniency – IMF

The exercise of extensive forbearance by Irish banks on home loan defaults is “likely” to have contributed to the accumulation of arrears in the aftermath of the crash, says an IMF working paper.

While the paper suggests the economic benefit of temporary forbearance and loan modifications for struggling households could outweigh their costs, it says this depends on the circumstances prevailing in the country.

“Extensive forbearance, such as interest-only payments, helped smooth consumption but allowed arrears to build,” the paper says of the situation in Ireland.

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Extra public service pay day to cost exchequer €300m

The inclusion of one additional pay and pensions day in public expenditure next year for “technical” reasons will cost the exchequer some €300 million, Government documents show.

Revised spending estimates from Minister for Public Expenditure Brendan Howlin also show that Government moves to suspend metered water charges in favour of lower flat fees will necessitate a €85 million increase in public expenditure next year.

The 253-page document – known as “the Rev” in official circles – also sets out a further allocation of €62 million to meet additional spending pressures unrelated to the water scheme.

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Mortage approvals soar as buyers seek to beat restrictions

Mortgage approvals have jumped 42 per cent as first time buyers seek to get on the property ladder ahead of the introduction of new lending restrictions.

A total of 23,796 mortgage approvals have been recorded for the year to the end of November, according to figures compiled by the Banking and Payments Federation Ireland (BPFI).

It said the value of mortgage approvals for the first 11 months of 2014 was €4.2 billion.

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Irish Stock Exchange announces #IPOready initiative

The Irish Stock Exchange has announced a new programme for companies planning to go public over the new few years.

The #IPOready initiative, which is supported by Enterprise Ireland and Invest Northern Ireland, provides firms that are on course for an initial public offering (IPO) with a support programme to teach them about investor relations, raising capital and business management.

“Listing on public markets brings enormous benefits for successful companies. Companies that have listed on the ISE raised €23.5 billion between 2004 and 2013. Eight new companies have listed successfully in the past two years. This programme is designed to support more Irish companies to become IPO ready,” said Aileen O’Donoghue, director of strategy at the Irish Stock Exchange.

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EU states agree to cap credit and debit card transaction fees

European governments have agreed to cap the fees retailers pay to process debit and credit card transactions in a move the EU parliament said should bring down costs for customers.

Negotiators agreed late last night to cap charges across the 28 countries in the union following a long battle over charges with payments groups, including Visa and MasterCard.

The cap would apply to both cross-border and domestic card-based payments which cost businesses across the EU around €10bn a year. The fees are opaque and differ from country to country.

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Fresh scrutiny for Irish tax regime as EU leaders meet

Ireland’s corporate tax regime is expected to face fresh scrutiny today at a summit of EU leaders in Brussels, as Taoiseach Enda Kenny meets EU leaders for the first time since the Luxembourg Leaks scandal broke last month.

While the EU’s investment plan and the situation in Ukraine had been expected to dominate the summit – the first under new European Council president Donald Tusk – a number of member states, including France and Spain, have successfully led a last-minute push to put aggressive corporate tax planning on to the agenda.

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Economy sees 3.5pc rise in GDP but pace of growth easing

THE economy grew by 3.5pc between July and September compared to the same time last year, signalling the pace of growth may be easing, official data shows.

And compared to the second quarter, the economy virtually stagnated, with gross domestic product (GDP) rising by just 0.1pc, according to the Central Statistics Office.

But analysts described the figures as impressive and expressed no concern over the slow quarter-on-quarter data.

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US group opposed to EU tax harmonisation plans to meet in Dublin

A US group, which is lobbying against efforts by the European Union to harmonise taxes on company profits, is hosting a seminar in Dublin today.

The organisation called Americans for Tax Reform argues that the ability of countries such as Ireland to maintain low levels of corporation tax encourages innovation.

The group is part of a broad coalition of organisations in Canada, Spain, France, Australia and Japan which lobby for countries to maintain autonomy in relation to taxes.

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Top 10% income earners fared best in Budget 2015

The Economic and Social Research Institute has said the top 10% of income earners gained the most from Budget 2015, while the biggest losers were the poorest 10%.

However, when the effects of all the Budgets since 2008 are put together, it is the top 10% of earners who have seen the biggest fall in their incomes.

The ESRI said the effect of Budget 2015 and the revised water charges scheme is close to neutral, increasing average incomes by less than 0.1%.

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