Archive for the ‘Accounting’ Category

Invest in making your wheels turn

January 26, 2016

Flywheel

This is a really interesting client.

This company has been around for a few generations and have done absolutely everything to survive the recent tough times,

They employ nearly 100 people and insist on manufacturing their products themselves in Ireland to preserve the quality control and the ability to provide the best solutions for their customers at all times.

They have their own retail outlets and also sell through some stockists.

They purchased a similar business overseas for the sole purpose of acquiring more potential volume so that production levels are kept up and the production facility remains viable.

One of the survival tactics like so many businesses during the recession was to cut back on overheads and cut out ‘unnecessary’ costs.

Of course the first to get the chop was the Marketing budget… advertising gone, sponsorships gone, exhibitions gone, customer evenings gone and PR gone.

Despite chopping these budgets the wheels didn’t fall off the business (well not immediately) – of course it didn’t as the business had a long established reputation, good recognition in the sector and a big collection of legacy customers who knew all about them.

A few months went by and the sales dropped, a few more months passed and they dropped again and so on. While the sales did not plummet immediately the lack of promotional activity meant the business gradually disappeared from view.

An aggressive overseas competitor spotted the gap and entered the Irish market, got some fantastic deals on adverts and started to win significant business.

The client has a large business with big payroll costs, an expensive production facility and a retail network all requiring big sales volume to sustain and there is virtually nothing being spent on attracting new business.

This is the “priority trap“.

We were preparing a plan for them but we were warned in advance that the budgets for promotion were tiny – surely generating new business was essential?

If you don’t invest in ‘telling your story‘, promoting your products and getting those wheels turning you will eventually have no business.

Should the first priority for the business be promotion and not the last?

Greg Canty 

Greg Canty is a Partner of Fuzion PR, Marketing and Graphic Design, with offices in Dublin and Cork

 

 

 

Be first or be different!

October 16, 2015

last man

Most of the accountancy firms have it down to a fine art at this stage.

As soon as the budget is finalised the newsletters are prepared and issued, mostly by email. Years ago it would be the newspaper the following morning that we relied on.

This year it was no different and very shortly after Michael Noonan finished his budget speech the first e-newsletter hit my inbox with the main highlights.

Nothing too insightful – a summary of the main changes with a token commentary. As you would expect some of the information was relevant to me and some of it was totally irrelevant.

An hour later another e-newsletter hits my inbox from another firm – obviously the same info with nothing extra in terms of commentary or insights.

And then came another and another and after a while it felt like a long distance race where the winners were on their way home and a few well intentioned stragglers came struggling past the finish line.

I had a peep at all of them and except for style differences the content was as expected – virtually identical.

differentiation

Differentiating your business is really difficult in particular when there are many players doing pretty much the same thing. The first firm to produce a e-newsletter on the same day as the budget broke the mould.

When this happened they were seen as unique, very progressive and it was a great way of differentiating themselves – now many others have caught up so this advantage is gone.

The only way to stand out now is to either win the race (Quintas in Cork were the first to hit my email this year) or to do something totally different.

Next year how about getting all of the team ready, each with a list of their clients and prospects. Segment these by type and instead of winning the race why not take a little bit of time and where possible prepare a personalised, customised, more relevant email to each recipient.

This might seem like a huge challenge but with a few versions of the email (each with an emphasis on different topics) and with carefully segmented email lists every recipient could get something very relevant and more useful to them.

Maybe this is something just possible with 20% of the email database – one could send the 80% the generic email.

That’s something I have received from no one and definitely something I would consider to be really valuable and yes, it would make the sender standout…

No matter what you do if you can’t be first try to be different!

Greg Canty 

Greg Canty is a Partner of Fuzion PR, Marketing and Graphic Design, with offices in Dublin and Cork

Opening a new business and budgeting for the essentials

April 27, 2015

Open for business

They were experienced operators with a successful business already up and running.

They decided to take the brave step to open another premises in a different location that they believed was currently under-served with a new concept. After all this is what you do to drive on and make progress?

The budgets were carefully worked out including renovating the premises, purchasing and installing the equipment, furnishing and decorating, branding and signage, professional fees and then some allowance was made for working capital and other opening costs.

Their budget also included a marketing fund – there is no point opening a new business unless you tell your target audience about it!

When all the budgets are done you look at your funding and cash flow requirements, some leasing, loans and an overdraft to make all of this possible and then you try to carefully manage the ‘opening project’ so that you come in on target.

For as long as I have been in business including my time as an accountant and in management there is a ‘rule of thumb’ that nearly always applies: “Everything takes longer than you expect, everything costs more and there is always the ‘unexpected’ that you also have to cope with“.

As sure as night follows day there was a problem with the fire officer that resulted in extra work that was necessary for the building – this delayed the opening and resulted in extra unexpected costs. As a result there was a serious unexpected ‘hit’ on cashflow for this essential expenditure, which could not be avoided.

As a result the marketing budget was wiped out and this new business suddenly had to rely on ‘word of mouth‘ and social media to get the word out there.

Unfortunately the momentum was not enough and the volume of business coming through the door from the date of the opening was insufficient to cover basic running costs and within months the new venture had to be shut as it was not sustainable.

The reality of the situation was that the marketing fund was even more essential than the demands that the fire officer made on the project. One was essential to get the doors open and the other was essential to keep the doors open. As a result all investment, dreams, sweat and tears were lost and the existing business will take some time to mop up the resulting debts and the recovery.

The guys were put in a total predicament and were forced to do what they had to do and this ultimately was the act that effectively closed the business and put their existing business at serious risk.

Did they have any options?

They took a view and a huge risk that they could sacrifice the most essential overhead of all and this was their ultimate downfall (while totally understandable).

Maybe they could have done a few things different ..

They could have:

  • Allowed for a contingency fund for delays/unexpected cost in the original budgets (you always need a buffer) – don’t go ahead until you have that
  • Explored other ways of cutting back and leaving their marketing fund somewhat intact
  • Looked for extra funds before proceeding any further with the project (would a bank manager have appreciated and understood their late request for extra funds? ultimately it might protect his own investment) – a strong open and honest relationship is a must for this to happen
  • Negotiated credit with suppliers – again a strong, open and honest relationship is a must (would suppliers understand?)

We have seen this cruel scenario being repeated time and time again with clients with the same awful result. Some manage to survive the setback and many unfortunately do not.

Once open you must have a fund to promote your business because without awareness and customers everything else is at risk.

Keep dreaming, keep advancing, keep expanding but most importantly keep succeeding!

Greg Canty 

Greg Canty is a Partner of Fuzion who offer Marketing, PR and Graphic Design services from our offices in Dublin and Cork, Ireland

“Done it all before” versus a fresh perspective and sparkle

January 25, 2015

Bored Accountant

I left the accountancy practice because I knew I had gone stale, working on the same clients in the same environment and now I wanted to get stuck in and get more involved so I decided to move into industry.

I started with Moog, an American multinational at the age of 22 taking on the role of financial accountant, reporting into the financial controller.

I didn’t have experience of working for a multi-national before but I was a bright, enthusiastic qualified accountant looking for a new challenge.

For six months I was learning, soaking up this experience with fresh eyes and a new perspective and after that initial period I really got into gear and they got the best of me. The financial controller went off on maternity leave after I was there just over a year and I was asked to take on her role and mine – not a bother, I took it in my stride. When she came back I knew I couldn’t slip back to the supporting role so I looked for a new challenge.

I then took on the role of financial controller of a drinks wholesaler and manufacturer, a subsidiary of Guinness.

I didn’t have experience of working in the drinks sector before but I had worked in practice and I had been the financial controller in a large multinational. For six months I was learning and soaking up this experience with fresh eyes and a new perspective and after that they really got the best of me.

Music Store

After a few years in this role I was going stale, I was repeating myself and the job was more of the same. I had always wanted to start my own business and I loved music so I recruited a manager and opened a few music stores around the country while I still stayed working. I had never worked in the music industry before nor had I operated retail stores but I brought a fresh perspective and bucket loads of enthusiasm to this new experience.

Out of the blue I was asked if I was interested in the General Manager role, which I gladly accepted.

I didn’t have the experience of managing a large business but I was a bright, enthusiastic person with a good understanding of the company and I had a solid background in finance.

For six months I was learning, soaking up this experience with fresh eyes and a new perspective and after that period they really got the very best of me achieving the best results ever for the company.

Guinness

I then moved to Guinness in Dublin taking on a number of different roles, none of which I had done before bringing fresh eyes and a new perspective to all of them.

After three years I became the general manager of a subsidiary of Heineken bringing fresh eyes and a new perspective to the role. I really drove on the performance of the company but in truth I had done a similar role for the Guinness subsidiary and after three years I was getting bored and I should have moved on. I lasted two more years and left to join Deirdre Waldron at Fuzion, which has been brilliant.

Everyday in Fuzion we are faced with new situations and fresh challenges. We often work with new clients from different sectors and we achieve great results by bringing fresh eyes, new perspectives and enthusiasm and applying all of our collective experience and learnings to their challenges.

I have learned in my 32 years of working that to get the best of anyone in a role there must be some element of a challenge in it, something new the whole time that keeps them challenged, fresh, inspired and motivated and at the top of their game.

I have also learned that after a while of doing the same thing over and over people will get stale as that sense of challenge disappears. Despite having all of the experience and knowledge a big opportunity will be lost by not handing over the mantle to someone who knows less but has a sparkle, a freshness, a hunger and a desire to learn and take on a new challenge.

The next time you are choosing someone for a role or you are putting your project out for contract try to resist the safe temptation of going with the person or the company that have “done it all before” and instead look for the fresh perspective and grab that sparkle.

Greg Canty 

Greg Canty is a Partner of Fuzion who offer Marketing, PR and Graphic Design services from our offices in Dublin and Cork, Ireland

Get it in writing!

January 18, 2014

Guinness - Pension Dispute

Now that was a very strange week …. amongst some great things that happened it was the “week of the pensions” and once again I learnt a huge lesson!

The last place I wanted to be this week was the Cork Court House but this is where I found myself – I stood there on Wednesday afternoon on the first floor having a consultation with my solicitor and barrister. This related to a complication to do with my pension with Guinness Ireland, which had never been sorted out.

I remember that day in 1999 when I handed in my notice to Guinness to return to Cork and take up the General Manager role at Nash Beverages, a Heineken owned company. I had been with Guinness in Dublin for three years and before that I had worked for a Guinness owned subsidiary called Deasy’s in Cork for six years.

Leaving was a hasty affair as effectively I was moving to a competitor of Guinness so my last day at St.James Gate was the day I handed in my notice. To be fair to them I was given time that day to say my goodbyes to the many friends and colleagues that I had made during the nine year period and later I was given a really great night out by the team I worked closely with.

There was a little niggle in my mind that day about my pension – at the time there was a rule with the Guinness pension scheme that if you left the company before completing five years of service then you would have to sacrifice the company contribution element of your pension. As this was nearly 8% of my salary for the three years I was in Dublin it was a significant amount.

Ironically two years later the pension laws of the country changed and such “loyalty penalties” are now outlawed (two years service is the criteria, which probably reflects a changing work environment where people move between jobs more frequently).

As I had been part of the Guinness “family” for nine years I hoped and assumed that this loyalty penalty would not be imposed in my case so I felt I needed some reassurance.

Guinness - St James Gate In the course of my time there, including the time I was in Deasy’s  I had built up a strong relationship with a senior member of the Guinness team, Paddy Gallagher who looked after these matters. Paddy was always a real gentleman to deal with and down through the years we had many chats about many things.

I remember he have me his theory about bosses one day – There are three types he told me. Ones you love, ones you hate and ones who are neither here or there. If your career works out evenly between each of these three categories you are doing well!

While I was doing my round of goodbyes I wanted to say goodbye to Paddy when I was also able to mention my pension issue to him. He assured me that this would not be a problem and to leave it with him.

That’s what I hoped he would say ..phew!

Two years later, when I was called as a witness in a High Court Case that my former Deasy colleague and best friend Tommy Doyle had taken against Guinness I once again met Paddy. As it turned I played a part role in mediating between the sides, which was finally settled.

Paddy brought up the subject of my pension that day and again assured me that it would be sorted – I was glad to hear that because at this stage I had absolutely nothing in writing other than a email between pension people suggesting that my employment was being treated as continuous,

Unfortunately Paddy retired shortly after the time of that meeting and the responsibility for pensions was passed from one person to the next and eventually to some department Scotland.

It took me until 2007 to finally get a statement from Guinness – this came after a litany of phone calls, emails and eventually I had to resort to letters from my solicitor. Unfortunately the statement confirmed my worst fears and what I was assured would happen never actually did.

The sums involved were too significant to walk away from so unfortunately I had to take the legal route in an attempt to resolve this misunderstanding. (I  only recently discovered there was an official complaints process, and the Ombudsman route which would have been less painful and costly).

So here I was, fifteen years after leaving the company standing with my barrister and solicitor to review the case, which was due to be heard the next morning – Guinness had made no offer or no hint of settling and were instead threatening compensation for their costs . €50,000 was mentioned !!

If I walked away now, dropped my case and agreed not to take the case to the pension Ombudsman they would agree that I would not be liable for their costs, just my own…

Can you please explain why I am hearing this now – surely I have a strong case?” I was dumbfounded.

Get it in writingIt’s simple” the barrister explained. “You don’t have it in writing and we have been assured from the other side that Paddy Gallagher doesn’t recall giving you any such assurance about your pension. This is all about what we can prove”.

“We are more than happy to run the case but there is a big risk and you could get caught for their costs if we don’t win”

I felt I had a good case, a few supporting pieces of evidence and it was clear to me that with my paper trail I could demonstrate that Guinness handled my pension file and all my enquiries badly. All true but sadly not enough to confidently win a case.

I felt I just couldn’t take the risk and I really didn’t want to get tied up in court, calling in experts and witnesses including Paddy so I reluctantly decided to take the offer. It killed me to sign the agreement including the waiver the other side insisted upon about the Pensions Ombudsman (surely that is a right you have?).

I must admit I was really upset so I headed up the street to Reidy’s Wine Vault for a stiff drink to calm down and I dug deep looking for some positive lessons to take from this debacle:

  • Look for any other possible route to sort something out rather than the legal route
  • Try to establish the strength of your case as early as possible before getting sucked into the process
  • Forget about fairness and promises, concentrate on proof

My biggest lesson is that even in a scenario where there is a lot of trust, friendship and understanding you still need to “Get it in Writing” to protect yourself.

I thought once again about that whirlwind last day in Guinness and my chat with Paddy.

Don’t worry Greg, I’ll look after that for you”

“Thanks a million Paddy, I appreciate it” ..I’m guessing that’s how that chat went

Under the circumstances I would have found it really difficult to say “That’s all well and good Paddy. Do you mind if I waited here in the office  while you put that in writing for me”.

While that would have been an awkward and uncomfortable moment it would have been a lot less painful than what followed.

I turn on the news on the way home and I hear about the incredible and disgraceful CRC revelations about the secret Paul Kiely €740,000 pension payments – did he have something in writing I wondered?

That was a strange week!

Greg Canty is a partner of Fuzion

Fuzion are a Marketing, PR and Graphic Design agency in Ireland with offices in Cork and Dublin

Balancing those debits and credits!

November 11, 2013

Work, Life Balance

Where did that time go?

31 years ago this boy was a raw, innocent 18 year old working as a junior accountant in a mid sized accountancy practice on the South Mall in Cork. At this stage I was two months into my apprentice and I was learning the basics.

Ironically, I had done Economics and Business Organisation in secondary school so Accounting was brand new to me!

For every debit there had to be a corresponding credit was the golden rule – if you got that, your accounts would always balance. If they didn’t balance something was wrong and you had to search for your mistake.

It’s probably easier for everyone now with the computers and the accountancy packages – we had to do it all manually with ledgers in my day. Imagine trying to dig through that lot to find where you went wrong..

I was in practice for 6 years and then went onto industry and eventually swapped the accountancy role for a general management one and that was the official end of my debits and credits (except for my own projects at least).

That debits and credits discipline always stood to me and I do think accountancy and the privilege of working with so many businesses at at a young age was the best business degree anyone I could ever hope for.

You listen and learn from clients, you understand the drivers of their businesses and you use your expertise to help them. In many ways I do exactly the same now except the expertise is quite different and I don’t have to worry about those debits and credits.

The strange thing is that life is full of debits and credits and it too must balance and if it doesn’t something is wrong.

I’ve been working hard all morning …. head out for a nice coffee

My crew work their socks off ….  take them for lunch on Friday

I’ve been stuck in that proposal for hours …. time for a stroll and fresh air

We’ve been working hard all year …. where will we go for our Christmas party?

Work, work, work …. spend time with friends, meet the kids, visit the folks

Busy doing stuff for everyone else …. get tickets for that gig

I’ve been working my socks off all year …. maybe a new car at the start of the year?

Whatever you do today make sure you balance your books!

Greg Canty is a partner of Fuzion

Fuzion are a Marketing, PR and Graphic Design agency in Ireland with offices in Cork and Dublin

Today I was an Accountant

October 17, 2013

accountant

I can’t help it ….I was once an accountant!

To be fair most people who meet me now get puzzled by this.

“Really?” ….yep!

For some reason I still won’t delegate these duties and in October of each year those deadline walls come closing in and there is no choice other than to knuckle down and prepare the accounts for the annual tax return.

I was like a bear today (sincere apologies to everyone concerned!) – I had worked till midnight last night doing the bank reconciliation and I was determined to break the back on the rest of the accounts work today. Besides feeling tired it made me feel totally miserable – the thought of the best part of my day being spent on “negative” work was killing me.

Romantically I always reckoned that doing the accounts was like telling the story of the business for the year. A long time ago I made a choice that I wanted to be part of the story rather than telling it afterwards!

Instead of meeting clients, trying to make positive things happen I had to, “for one day only” focus on just getting this horrible task done – I needed to be an accountant again and a cloud descended around me.

As planned I have broken the back on the accounts and while it wasn’t quite as bad a day as I had feared I am looking forward to being the “other me” tomorrow.

Are you telling the story or are you part of the story?

Greg Canty is a partner of Fuzion

Fuzion are an Irish Marketing, PR and Graphic Design agency with offices in Cork and Dublin

Driving too hard a bargain

August 20, 2013

Super pub

We were thrilled when the biggest super pub in the City called us and invited us to pitch for their business – we must be doing something right I thought.

At the time I was the General Manager of  Deasy’s, a Guinness subsidiary with depots in Cork and West Cork. We were drinks wholesalers and we delivered beer and soft drinks to the pub and off licence trade in these areas.

We had been doing quite well and this pub was one of those “prize” accounts that all our competitors were chasing. The business they were doing would probably be about 20 times the size of a normal pub.

This was an account we wanted so we put a really competitive price list together. There was enough in the price to win the business but still leave enough for us to make it worth our while.

Not good enough – we had to do better.

I guess this was no surprise as the incumbent wasn’t going to lose this business easily and the buyer  (in those days no one had a buyer but this crew had!) was going to quite naturally play us off against each other.

We sharpened the pencils and ate into our margins leaving a little left for us.

Not good enough – we had to do better.

At this stage we cut our margin on products across the board effectively giving them the cheapest prices we were giving anyone – this was crazy but if we wanted this prize account its what we had to do.

The buyer rang our Sales Manager – congratulations, we had won the account and they looked forward to doing business with us. Over time with the introduction of some new products and a few substitute brands we might be able to bring it back to some level profitability.

After our first delivery the buyer rang and told us that he had some breakages left over from his previous supplier that he wanted us to uplift. We would have a look at them and decide what we could do – even with out of date alcoholic products we would be able to reclaim the duty and pass the rebate back to them.

We inspected the breakages and there was a huge quantity of all sorts that he wanted to return – clearly they had done a clear out of their stock room and expected us to take back this rubbish that had been accumulated for years. Many of the products were non-alcoholic and some were brands that we never stocked and would not be able to get credit from anyone.

We carefully assessed the breakages and informed the buyer how much credit we would be able to manage. He informed us in no uncertain terms that he would pull the whole contract if we did not give him a 100% credit at our list prices – he was being totally unreasonable but he was serious.

We reluctantly collected the “rubbish” and processed the credit.

The account continued in this vein – he wanted emergency deliveries at a moments notice whenever he ran short, often at quite unreasonable times.

He pushed us so hard and continued to do so – so much so that there was no win left for us and we were starting to feel quite abused.

All of a sudden it wasn’t our prize account, it was a thorn in our sides. We started to get strict with them – they had to order properly, we cut out emergency deliveries. We maintained a good level of service  but now it was on our terms.

From time to time our suppliers would give us beer fridges and promotional events that we could allocate where we chose – needless to say we never passed these onto our “prize” account.

After six months we got a call from their purchasing manager who wanted to do another round of “squeezing” and was inviting us to submit our best prices.

This time we did a full review of our price list, increased the prices across the board and politely let someone else be a busy fool – that was the last time we set foot in the place.

James Caan - The Real DealIn James Caan’s book “The Real Deal” he spoke about a valuable lesson his dad had taught him from his leather trading days – it was always vital that you made sure there was a “Win-Win” left for both parties in a deal.

In our case there was certainly no win for us and in truth the supplier also lost out – they pushed us to the point where we didn’t actually care about their business any more.

Be careful not to drive “too hard” a bargain and make sure you walk away before the point where the business just isn’t worth it anymore

Greg Canty is a partner of Fuzion

Fuzion are a Marketing, PR and Graphic Design firm in Ireland with offices in Cork and Dublin

Petty Cash and the Red Head

August 18, 2013

Redhead

We were working to a strict budget but we knew we needed another person in the company to cover a few key areas of weakness.

The person would have to be a really organised all rounder who could help with stock control, provide some admin support and take over the credit control function.

It was a big ask finding the right person to do all of this in particular for the budget we were offering.

I was the financial controller of both Deasy & Co in Cork and Connacht Mineral Water Co in Galway, both Guinness subsidiaries.

I was in Galway early in the morning to conduct interviews with John, the General Manager. Both of us were in our early twenties, bursting a gut to drive on our careers but in reality quite inexperienced.

Applicant after applicant came through and we weren’t finding anyone that fitted the bill.

Eventually a really well dressed attractive young woman came through the door for interview. This gorgeous redhead wearing a sharp suit sat down confidently and answered all of our questions with authority.

To be honest she had taken both our breaths away –  in some way I think both of us were willing her to give us the right answers!

As the interview progressed and we were falling further under the spell of this confident, bright young woman I could hear the different voices in my head “just give her the job“, “give her the job now and forget about the other interviews” “be responsible Greg, start probing …

You know the job on offer would involve some credit control?” I asked

I know, that’s no problem” she replied confidently

A lot of people find credit control a difficult thing to do, would you be ok with it?” I probed further

Yes, I would be totally fine with that” she responded but not as assured as earlier.

How would you describe credit control?” my final question

She batted her eyelids, flicked her red hair and smiled at both of us “Would that have something to do with petty cash?

We knew we would both be fired within a month if we gave our attractive redhead the job and eventually we settled for a good solid young lad, who we would have to give some training to, so he could manage all aspects of the job.

The fancy package isn’t always the one that will get the job done!

Greg Canty is a partner of Fuzion

Fuzion are a Marketing, PR and Design firm in Ireland with offices in Cork and Dublin

The Sacred Cow – Raise Corporation Tax?

September 9, 2012
Sacred Cow - Irish Corporation Tax

Dare we ask the question?

I know this is a really unpopular thing to say – is it time to challenge the Sacred Cow and talk about raising the Corporation Tax rate in Ireland?

I think it is possible to do this and structure it in such a way that will still encourage companies to drive on in Ireland.

Before you think poor old Greg has totally lost his marbles hear me out ..

Why we need to look at this?

Let’s face it, people are bleeding and except for this government being prepared to grasp the nettle and take on some of those areas of excess (“real” sacred cows) that they have still left alone, they just can’t hit the regular Irish taxpayer any more – there is nothing left, nothing.

We need people to have some money in their pockets to keep the indigenous Irish economy going – inflicting more pain and extracting more cash from consumers will just do more damage than good. Aren’t we seeing this already?

Increasing the tax rate on companies who are making profits (let’s face it if you are losing money higher taxes won’t effect you) isn’t the worst thing in the world to do. At least they will be able to cope with it.

The Numbers

3.5 billion was collected last year from Corporation Tax at a rate of 12.5%. This was 10.2% of the overall tax take of 34.2 billion.

This 3.5 billion was the lowest collection of Corporation Tax since 1999 when about the same was collected when the CT rate was 28%.

The Challenge

This government must balance the books, they must collect more taxes, reduce expenditure, start generating jobs and begin to spark economic revival.

How can we do this if we scare the pants off prospective foreign investors by increasing the corporation tax rate?

We are led to believe with absolute certainty by those in “the know” that raising the CT rate is a no go area because it will start a mass exodus of these foreign investors.

Are we sure of that? Is this the main reason that is keeping them in Ireland? I’m not sure, but what do I know.

Taxes in Ireland

Big huh?

My Proposal

1. Raise Corporation Tax by 2.5% (hopefully for just a few years)

2. Introduce 100% immediate allowances for capital spend (this was done successfully in Australia)

3. Introduce tax incentives for companies who increase employee numbers.

4. Use 50% of the increase in CT tax as an investment fund for IT education (we are too far behind international standards and will have a serious problem in attracting these companies if we don’t sort out this supply pool of educated staff ) and an investment fund for indigenous Irish companies who need support at this stage to stay alive (only the ones that have a future)

While the CT tax rate would increase, for those companies that invest in capital and increase job numbers they could actually pay even less tax than now.

In a sweep we would collect more tax from those that can afford it, incentivise jobs and investment, invest in IT education and support indigenous Irish businesses. We might also have a bargaining chip in EU negotiations.

And..we would also be able to lay off the general public who are already bleeding way too much.

What do you think?

Ok, what the hell do I know? Maybe my assumptions are wrong, maybe they are too simplistic and maybe my figures are all wrong – maybe all of this is happening already and these incentives are in place?

At least lets have a discussion and flesh out this Sacred Cow before we cripple Joe Public even more without looking at the alternatives.

Is it time?

Greg Canty is a partner of Fuzion (he was an accountant at one point in time!)

Fuzion are a Marketing and PR firm with offices in Dublin and Cork