Kevin and Billy Acton are twin brothers, born 1 July 1982 and are Irish domiciled. After they graduated, they were both employed by a large international firm. When the firm lost market share in Europe it was decided to close the Irish operations and both Kevin and Billy lost their jobs through redundancy in 2012.
Kevin remained unemployed until 1 July 2013 when he moved to Australia. He was very fortunate to obtain work there within two weeks of arrival that was relevant to his qualifications and experience. He hopes to remain with that Australian employer for at least another four years. In 2008 Kevin bought a house in Ireland and occupied it as his principal private residence, at that time, he took out a mortgage to fund the purchase of the house. He could not sell his house when he was moving to Australia; therefore he rented it to a friend at market rent rates. He did not inform the Revenue Commissioners that he rented the house – he thought he had no need to since he was no longer resident in Ireland.
Billy remained unemployed since 2012. He is about to set up his own business making a motorised part for golf bags, he is confident that there will be big demand for this new innovative product. He will start off in business as a sole trader and if the business grows sufficiently he will transfer the business to a company. He hopes to commence trade on 1 November 2015; he will prepare accounts to 31 October each year. His projected profits are:
- Year ended 31/10/2016 €50,000
- Year ended 31/10/2017 €30,000
For the first two years of trading Billy will rent commercial premises and lease a car. He hopes to buy an industrial building and get it customised to include certain items of plant which will be needed for the manufacturing process.
In 2017, if Billy does not transfer the business to a company, he may consider entering into a partnership with Edward, his friend since childhood. Edward has about €500,000 cash which he inherited on the death of his father. Billy will want to keep control of the business given that it’s his “know how” which will be the reason for the existence of the business. Billy’s interest in Edward being a partner is only because Edward will be able to invest money in the business. Edward will have no input in the day to day running of the business and the business name will not be changed.
Billy meets you at a rugby match on 1 October 2015; you have not been in touch with each other for over three years. When he hears that you are studying taxation at college, he immediately tells you of his plans and asks for some tax advice. Billy also fills you in on Kevin’s move to Australia etc. (Kevin will authorise you to discuss his tax affairs with Billy).
Kevin and Billy Acton are twin brothers, born 1 July 1982 and are Irish domiciled. After they graduated, they were both employed by a large international firm. When the firm lost market share in Europe it was decided to close the Irish operations and both Kevin and Billy lost their jobs through redundancy in 2012.
Kevin remained unemployed until 1 July 2013 when he moved to Australia. He was very fortunate to obtain work there within two weeks of arrival that was relevant to his qualifications and experience. He hopes to remain with that Australian employer for at least another four years. In 2008 Kevin bought a house in Ireland and occupied it as his principal private residence, at that time, he took out a mortgage to fund the purchase of the house. He could not sell his house when he was moving to Australia; therefore he rented it to a friend at market rent rates. He did not inform the Revenue Commissioners that he rented the house – he thought he had no need to since he was no longer resident in Ireland.
Billy remained unemployed since 2012. He is about to set up his own business making a motorised part for golf bags, he is confident that there will be big demand for this new innovative product. He will start off in business as a sole trader and if the business grows sufficiently he will transfer the business to a company. He hopes to commence trade on 1 November 2015; he will prepare accounts to 31 October each year. His projected profits are:
- Year ended 31/10/2016 €50,000
- Year ended 31/10/2017 €30,000
For the first two years of trading Billy will rent commercial premises and lease a car. He hopes to buy an industrial building and get it customised to include certain items of plant which will be needed for the manufacturing process.
In 2017, if Billy does not transfer the business to a company, he may consider entering into a partnership with Edward, his friend since childhood. Edward has about €500,000 cash which he inherited on the death of his father. Billy will want to keep control of the business given that it’s his “know how” which will be the reason for the existence of the business. Billy’s interest in Edward being a partner is only because Edward will be able to invest money in the business. Edward will have no input in the day to day running of the business and the business name will not be changed.
Billy meets you at a rugby match on 1 October 2015; you have not been in touch with each other for over three years. When he hears that you are studying taxation at college, he immediately tells you of his plans and asks for some tax advice. Billy also fills you in on Kevin’s move to Australia etc. (Kevin will authorise you to discuss his tax affairs with Billy).
