Practice News Archives - Page 4 of 14 - Kelly Rahill Accountants

Irish Internet economy worth E21bn by 20

Ireland’s Internet economy is predicted to grow in value to E20bn by 2020 but Irish firms risk being left behind and becoming globally irrelevant unless they innovate now.

That’s according to global technology consultancy, BearingPoint, who said that Irish people are estimated to have spent E6 billion online in 2014, according to a recent study.

In 2013, the Government estimated that Irish online shoppers spent only E1.1 billion on Irish goods and services. Publishing its digital strategy report, “Leap into the connected digital economy”, BearingPoint said Irish businesses need to integrate digital thinking into their business model if they are to retain and grow their markets.

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Pressure on ECB to buy sovereign bonds

Banks are not expected to take up all the long-term European Central Bank loans offered on Thursday, increasing pressure on the ECB to begin buying sovereign bonds to hit a self-imposed stimulus target.

The ECB is offering banks the cheap, four-year loans as part of a package of measures to add around 1 trillion euros to its balance sheet – a goal it has set with a view to pumping money into the economy to save it from deflation.

At 0.3 percent, inflation is far below the ECB’s target of just under 2 percent. Furthermore, a downgrade of Italy’s sovereign debt rating last week and market jitters about Greece highlight the risk of the euro zone crisis flaring up again.

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European IPOs reach levels last recorded in 2007

Close to €50 billion has been raised on European equity markets this year, easily surpassing the combined total secured in the whole of 2012 and 2013, according to figures compiled by PwC.

In October and November, 55 companies raised €8.5 billion on markets, as against €6.6 billion for the third quarter.

For the year to date, a total of €48.8 billion has been raised, compared to €37.8 billion for combined 2012 and 2013, PwC’s IPO Watch analysis shows.

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First time buyers less likely to fall behind on mortgage payments – research

New research from economists based in the Central Bank shows that first-time buyers have lower default rates than other participants in the housing market.

The research appears to bolster the case for the Central Bank easing off on plans to impose strict lending restrictions on first-time buyers.

The findings from the new economic paper were issued two days after the deadline for submissions on the proposed strict new lending restrictions was closed by the Central Bank

However, the Central Bank denied that the research was held back, and stressed the findings in the research paper were the personal views of the authors and not the official views of the Central Bank.

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UK ‘Google tax’ will target ‘Double-Irish’ inter-company payments

A new British tax on companies that shift profits out of the country and into tax havens will target inter-company fees for services like use of intellectual property, according to a Treasury document seen by Reuters.

Companies will also be required to report their potential liability to the new tax, which the note said will sit outside the existing corporate tax system. That is intended to avoid legal challenges under existing tax treaties with countries like Ireland, a major conduit for shifted profits.

The Treasury document said that the 25 percent tax would be effective April 1, 2015, and would target conduit-type structures, such as the “double-Irish” used by Google.

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Recession had already hit parts of country over a decade ago – ESRI

LARGE chunks of Ireland entered recession a whole six years before the country as a whole, according to new research.

Both the South East and South West went into recession more than a decade ago, according to new research from the Economic and Social Research Institute (ESRI).

The think tank said output in the two regions began to shrink from 2002 onwards, even though the country didn’t officially hit recession until 2008.

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Main Irish banks have submitted proposals on new mortgage rules

The deadline for the receipt of submissions on the proposed introduction of a cap on mortgages, which is due to be introduced early next year, passed at midnight.

It is understood that all the main banks submitted proposals on the new rules, but will not be publishing them.

The Central Bank plan would see potential mortgagees having to come up with 20% of the value of a property to put down as a deposit.

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Irish family businesses lag behind competitors in global poll

Irish family businesses need to adapt faster and become more professional, according to a new report from PwC.

PwC’s ‘Irish Family Business Survey’ for 2014 also shows that compared to other Irish business sectors, family businesses here see themselves as less entrepreneurial than their international counterparts.

PwC’s Irish Family Business Leader Paul Hennessy said that family businesses have changed their mindset since the survey was last carried out in 2012.

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Central Bank urged to row back on proposed mortgage rules

Central Bank urged to row back on proposed mortgage rules.

Ulster Bank has told the Central Bank that borrowers should be required to have a deposit of just 10 per cent if looking for a mortgage of up to €500,000, in a submission to the regulator about proposed new limits on lending.

Bank of Ireland, meanwhile, has urged the regulator to retain the current informal regime where customers can borrow up to 90 per cent of the purchase price of their property unless evidence emerges that prices are running ahead of the long-term average.

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Euro zone morale improves in December on prospect of ECB money-printing

Sentiment in the euro zone picked up in December as investors took a brighter view of the future, probably due to expectations that the European Central Bank will start buying assets next year, a survey showed on Monday.

Sentix research group’s index tracking morale among investors in the euro zone climbed to -2.5 in December from -11.9 the previous month, faring much better than the -10.5 forecast in a Reuters poll.

The rise was driven by the third-strongest increase in investor expectations in the index’s 12-year history to 12.0 from their November reading of -2.0.

ECB President Mario Draghi said last week that the euro zone’s central bank would decide early next year whether to take further action to revive the bloc’s economy.

“His de-facto announcement of broad-based security purchase program is probably the main reason why investors’ expectations for the coming six months have improved so dramatically,” Sentix said. Read more