UHY Global, a bi-annual magazine, gives you insight into international business topics, featuring thought-leading opinions and experiences from global contributors including UHY member firms, leaders of UHY service and industry groups and external sources. UHY Global goes digital! In this issue of UHY Global we look in detail at: DIRECTION OF TRAVEL –  The changing face of global tourism PITFALLS OR POTENTIAL – The uncertain world of bitcoin THE RISE AND RISE OF THE ELECTRIC CAR IS THERE AN APP FOR THAT? – Keeping up with the Fintech revolution #2018 #BusinessAdvisory #UHYGlobalIssue

“ In the top five best countries to do business ” – Forbes Magazine 2014 Just one of the many attractive aspects of establishing a company in Ireland is the employable workforce. Irish people have a strong work ethic and this is reflected in the rate of employee turnover that tends to be well below the European average. Ireland produces a high level of quality graduates given the educational system is among the best in the world. Furthermore, setting up in Ireland allows companies to avail of workforce talent across Europe due to the EU open labour market. The Irish government recognises the importance of inward investment as a provider of high-quality employment and has invested substantial resources to identify potential skill shortages and provide an education and training system designed to meet the requirements of businesses. There are strong links between industry and educational establishments, particularly in emerging high technology sectors. Generally, European Economic Area (EEA) nationals and Swiss nationals are allowed work in any European country without a work permit or visa. A non-EEA national wishing to start up a business in Ireland, or an employer wishing to employ non-EEA nationals in Ireland, may require visas and permits. For employees coming to work in Ireland there are several tax reliefs and incentives. These tax reliefs include ‘Entrepreneurs Relief’, ‘Key Employee Engagement Program’, tax relief on certain relocation expenses and more. How can UHY Farrelly Dawe White help your firm? Company set-up Tax registration Intellectual Property Planning Full use of tax benefits Minimise tax costs Grant application VAT and customs duty Accounting advice and assistance Corporate structures R&D tax credits Routine compliance matters Check out our €995 Be Brexit Ready package here! #2018 #Brexit #BusinessinEU

Bitcoin – Pitfalls or Potential? THE BITCOIN BUBBLE MAY BURST, BUT THAT DOES NOT MEAN THE VIRTUAL CURRENCY – AND THE TECHNOLOGY THAT SUPPORTS IT – WILL DISAPPEAR Nobel prize-winning economist Joseph Stiglitz wants it outlawed. Billionaire investor Warren Buffett says it will “come to a bad end”. During the early months of 2018, the hitherto wildly fluctuating value of bitcoin appeared set on an inexorable downward trend – with the most famous cryptocurrency losing support as quickly as it sheds value. But advocates remain. Japanese businesswoman Mai Fujimoto, who goes by the nickname ‘Miss Bitcoin’, told newswire AFP in January: “I convert all my disposable income into cryptocurrency. I have been doing this for nearly a year now. I convert all my savings into cryptocurrency instead of putting them in a bank.” It is a conundrum. Experts around the world warn of the imminent burst of the bitcoin bubble, and many governments are openly hostile to its very existence. But enough ‘Miss Bitcoins’ have bought and traded the currency to take its value on a wild and unpredictable ride. Short-term speculation certainly plays a large part – although Mai Fujimoto started using bitcoin to cut out bank fees when sending money abroad. For all the anxieties around its reputation as the payment method of choice for criminals and terrorists, there are legitimate reasons for ordinary people to use a decentralised currency, free from the control of banks and governments. JAPAN LEADS THE WAY Some countries have recognised that fact. In April 2017, the Japanese government passed a law recognising bitcoin and other virtual currencies as legal tender. Morito Saito, senior vice president of UHY FAS Ltd in Tokyo, believes that several factors have helped to give bitcoin legitimacy in Japan. “Firstly, Japan’s Financial Services Agency (FSA) started regulating bitcoin, and that led to its credit rising,” says Morito Saito. “The FSA issued a licence to cryptocurrency exchanges, also requiring them to have minimum capital reserves and anti-money laundering checks in place.” With official sanction and oversight, bitcoin’s credibility rose. Morito Saito says that another decisive factor was the decision of several leading financial institutions – including major Japanese banking groups SBCC Venture Capital, Mizuho and Mitsubishi UFJ Capital – to invest in Bitflyer, the country’s leading bitcoin exchange. “Major retailers, such as Bic Camera and Marui, started partnerships with Bitflyer, which also raised the credibility of bitcoin,” he adds. In fact, this raised bitcoin’s credibility to the point where, today, a number of major Japanese retailers accept bitcoin payments, and at least one company has offered to pay part of its employees’ salaries in virtual currency. In the Ukraine, by contrast, the focus is as much on bitcoin mining (the process of creating bitcoins by using special computer equipment to solve complex mathematical problems) as investing. Alexander Koinov, managing partner at UHY Prostor Ltd in Kiev, says: “The mining of cryptocurrency is very profitable in Ukraine, because the price of electricity for businesses is very low, and there are many suitable and cheap premises and technically well-educated staff.” Read the full article in the most recent issue of UHY Global UHY Global goes digital! In this issue of UHY Global we look in detail at: DIRECTION OF TRAVEL – The changing face of global tourism PITFALLS OR POTENTIAL – The uncertain world of bitcoin THE RISE AND RISE OF THE ELECTRIC CAR IS THERE AN APP FOR THAT? – Keeping up with the Fintech revolution Read the full interactive digital version here Request a Call Back From Our Team #BusinessGuide #2018 #UHYGlobalIssue #Finance #Technology

In our Summer 2018 issue: Can A Business Pay For Your Child’s Or Parent’s Long-Term Care Gifting The Family Home – An IHT Trap Director’s Loan Accounts: No Turning Back! The ‘Reasonable Excuse’ Exception From Penalties The Power To Vary A Valid Nomination Timing Of A Bonus Payment Read the Summer Newsletter #2018 #UKNI

In this piece, we share actionable tools and frameworks that can create a Blue Ocean Strategy that can give your company a competitive edge. Value Innovation This is the cornerstone of Blue Ocean Strategy. The company should attempt to make their competitors irrelevant. Within this strategy, there should be an equal emphasis on innovation as there is on value. Here the company should increase value whilst reducing costs. Looking at the possibility of altering the cost structure for company and client (decreasing cost) and simultaneously increase the buyer value. Strategic Canvas To move forward with the model, and thus the company’s new Blue Ocean Strategy, the use of the strategic canvas can be one of the most crucial aspects of the planning of the strategy. The canvas can be split between a diagnostic framework and an action framework. The diagnostic framework is somewhat of a situational analysis. It looks at the current state of play, what the competitors are doing and investing into, and the competing factors of an industry. The action framework is the part of the canvas that formulates the offering level that buyers receive across all key competing factors. Here, the company would start to think about alternatives instead of competitors, to think about non-customers instead of customers. Four Actions Framework In short; reducing, eliminating, increasing and creating competing factors are the four choices within the four actions framework. Your company could reduce certain elements well below the norms of the energy management industry. It could eliminate the elements that aren’t necessary. The firm can look at either reducing or eliminating competing factors from their own current strategy. The company could raise certain competing elements well above the norms of the industry. Creating new elements that ultimately provide value is a way to enter a new space in the market. Value can be increased by raising or creating competing factors that the industry has never seen. This, in turn, creates a new value curve that has a distinctive shape against the competitors. A company can use the Eliminate-reduce-raise-create grid to help with the four actions framework. This is a tool to simply plot the four actions framework and present it in a digestible format. Six Principles There are six principles that the company should be conscious of. They are split between formulation and execution principles. They should be remembered throughout the planning and implementation of the model. Formulation Can the company reconstruct market boundaries? Does the blue ocean strategy focus on the big picture as opposed to numbers? Does the new strategy reach beyond existing demand? Does it get the strategic sequence right? Execution A company needs to overcome organisational hurdles and the execution needs to be built into the strategy. In terms of organisational hurdles, there are four main components that companies need to be conscious of. Cognitive hurdles (when the company is ‘stuck’ in the status quo). Hurdles due to limited resources (denying the initial change/alteration in strategy). Motivational hurdles are related to the cognitive hurdles in that employees could have little motivation to move out of the status quo. The political hurdles then consist of opposition from powerful interests. The company could plan with all the hurdles accounted for. 3 Important Characteristics The company should be aware that three characteristics of a good strategy are focus, divergence and a compelling tagline. These are actionable tools and idea generation processes that can help your company implement a Blue Ocean strategy. Let us know what you think of this piece! Read more… #2018 #BusinessGuide

UHY Study European economies face tax burden nearly twice as high as major emerging economies Other Western economies could be inhibiting growth with higher relative tax takes The Republic of Ireland has a tax burden of 26% of Gross Domestic Product (GDP), over a third (39%) lower than the average rate for European economies (43.3%), shows research by UHY, the international accounting and consultancy network. Ireland’s government’s tax take is also lower than the global average (28.2%) in the study – the only Eurozone country studied to be lower. Ireland was ranked 19th in the study. UHY studied 34 countries around the world, calculating what percentage of that country’s GDP is taken by the Government in tax (see chart below). UHY says that the Republic of Ireland offers many companies major tax incentives to base themselves in Ireland in addition to the 12.5% standard corporation tax rate. For instance, the Government offers a tax credit of 25% of qualifying expenditure spent on Research and Development that can be offset against a company’s corporation tax liability. Generally, European economies dominated the top of UHY’s table of the highest taxes. European countries, on average, have a tax burden of 43.3%: over 50 percent higher than the global average (28.2%) in the study. Denmark came top of the study with the Government’s tax take representing 53.5% of total GDP. Emerging economies in general have seen much lower levels of Government tax ‘take’, including many in the ASEAN (Association of Southeast Asian Nations) trading bloc such as Malaysia (16.5%) and the Philippines (13.9%). Alan Farrelly of UHY member firm UHY Farrelly Dawe White in the Republic of Ireland, comments: “Lower personal and business taxes can help the Irish economy spur growth and create incentives, particularly for investors and larger, more globally-focused businesses.” “Along with tax incentives and a lower overall burden of taxation, the Irish Government offers many companies other inducements to invest in the country. For example, the Government can even give financial assistance – administered either by Enterprise Ireland or Shannon Development.” “The availability and level of Government assistance is largely dictated by where the company is based to increase economic activity across all areas of the country, but particularly in the midlands and western regions of Ireland.” “However, in recent years the European Commission has been applying increasing pressure on the Irish government over its comparatively lower tax rates and wants it to reduce the amount of tax benefits given to foreign-based companies. Businesses will largely want the government to resist that pressure.” “For more developed economies it can often be harder to balance an ageing population with trying to reduce the tax rate, but Ireland is currently leading the way.” Levels of tax take by national Governments are of growing interest, particularly for the EU at the moment with Brexit on the horizon, to secure Government funding in the short term and encourage growth in the long-term. Recently, the European Commission suggested that EU countries may have to consider changing tax policies to help fill the €15 billion annual budget hole left by the UK’s Brexit. These could include proposals such as using a portion of corporate tax receipts from national treasuries for the EU’s common funds and programmes. THE REPUBLIC OF IRELAND SEES A TAX BURDEN OVER A THIRD LOWER THAN THE RATE OF EUROPEAN ECONOMIES [table id=23 /] UHY Global UHY Global goes digital! Read about the diversity, the thinking and the difference that a truly global team can make… Our latest issue of UHY Global includes the following key business topics: GLOBALISATION IN RETREAT? Is it on the wane or just evolving? GETTING THE GIG – The global rise of the independent worker RETHINKING EUROPE – Growth and potential shifts eastwards TAXING THE WORLD Read the full digital version here Request a Call Back From Our Team #2018 #BusinessinEU #CaseStudy #UHYGlobal

In our Spring 2018 issue: Tax Planning Nobody Will Rush To Try Are You Winding Me Up? Property Rental Expenses: Your Guess Is As Good As Mine! Joint Spouse/Civil Partnership Ownership Post-Letting Expenses Claim A Deduction For All Allowable Business Expenses Read the Spring Newsletter #2018 #UKNI

‘Intelligence demonstrated by machines’ is one of the most advanced examples the technological world has in the present day. The ability for machines to learn and act upon those learnings is something that the business world has already started to implement. (Campaign Asia-Pacific, 2016) Machine learning, for example, can help firms learn more about their customers. The proper utilisation of machine learning could enable advanced search techniques that “identify, categorise and gather user-defined data elements corresponding to search criteria”. This type of artificial intelligence can ultimately improve efficiency in scoring, forecasting and classifying. Artificial intelligence is a technology that threatens to replace human workers for a wide range of jobs in a range of industries. There are suggestions that artificial intelligence could be both beneficial and threatening. This paper examines this challenge in terms of marketing professionals. The vast majority of business executives believe that artificial intelligence will revolutionise their industry at some point. The majority feel that this revolution will occur soon. As the utilisation of AI in marketing appears almost inevitable, marketing professionals must look at ways jobs in the industry can remain. For example, it is reported that 50%-80% of marketing professional work time usage is mired in the mundane labour of ‘collecting and preparing unruly digital data’. Considering these tasks could become automated by machine learning it could eliminate certain jobs whilst creating space and time for other marketing professionals. By utilising uniquely human traits professionals can remain valuable. Creativity, storytelling and execution are just three traits a professional can use that artificial intelligence can’t. Although the three traits can be optimised by AI, it “cannot drive the development and growth” of the three variables. As the frequency of micro-targeted customers increases, it is apparent that this is an unsustainable approach to marketing for the long term without utilising developments in technology. With more traditional technological tools it is more unachievable, hence the utilisation of AI. All in all, the mundane tasks of a professional could disappear given the rate of machine learning adoption. However, if professionals can direct the uniquely human traits to the benefit of a firm, there is the reason to believe that certain marketing professions and marketing areas will remain to be led by humans. (Cramer, Downs, Kudbya et al, Campaign Asia-Pacific) #2018 #Technology #UHYGlobal

A €300 million Brexit Loan Scheme for small business will open on 31st March 2018 An Tánaiste and Minister for Business, Enterprise and Innovation Frances Fitzgerald TD, in partnership with the Minister for Agriculture, Food and the Marine Michael Creed TD, has secured Budget funding for a new Brexit Loan Scheme which will provide affordable financing to Irish businesses that are either currently impacted by Brexit or will be in the future. The new Scheme will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through commercial lenders to get much needed working capital into Irish businesses. The new Brexit Loan Scheme aims to make up to €300 million available to businesses with up to 499 employees at a proposed interest rate of 4%. The scheme is open both to State Agency clients and those businesses that do not have any relationship with State Agencies. The finance will be easier to access, more competitively priced, and at more favourable terms than current offerings. Department of Agriculture, Food and the Marine share of funding ensures that at least 40% of the fund will be available to food businesses. Both Departments are also exploring the development of a longer- term “Business Investment Scheme”, which would focus on business development to support enterprises in investing strategically for the post-Brexit environment. Due to State aid rules, the Scheme will not be available to farmers and fishermen. An alternative scheme for primary producers in the agriculture sector and fishermen is currently under consideration by DAFM. The Scheme will be available from 31st March 2018 and will remain open until 31st March 2020. Find out more: Department of Business, Enterprise and Innovation Download: Brexit Loan Scheme Factsheet UHY FDW is continually monitoring developments throughout the Brexit process and will offer advice as the process becomes clearer. If you would like to discuss Brexit – how it might impact you and your business – or, if you require a ‘Brexit-ready health-check’ from one of our business advisors please contact us. Call +353 42 933 9955 Email info@fdw.ie Email Call Request a Call Back From Our Team #2018 #Brexit #GrantScheme #UKNI

UHY FDW are committed to supporting young people in business whether that is our employees, clients or young people in the local community and around the world. To show our support and encourage young entrepreneurs and business people in the North East of Ireland and beyond we have set up UHY FDW YES – Young Enterprise Society. The aim of UHY FDW YES is to connect with young people in business around the globe. The goals of our network are to: Provide an opportunity for entrepreneurs to meet like-minded individuals Develop & improve members networking and communication skills Strengthen members pitch & presentation skills Provide an opportunity for members to gain business relationships Provide a platform for referrals of business amongst members Provide an opportunity for members to build their brand Provide members with access to all business sectors Become a part of our network! Follow us on Twitter Join our LinkedIn Group Follow us on Facebook Why should you join? Gain access to a platform to present your business Network with experts from all major industries Experience an environment where you can bounce ideas off like-minded people Seize an opportunity to grow your business Who should join? Individuals aged 18 – 35 Individuals working in any industry looking to develop their skills and network Young entrepreneurs Individuals involved in new business start ups We are encouraging all members to be actively involved in the group by engaging in these conversations, networking with fellow members and inviting others to the society. We will be hosting an event in the coming months with some well known guest speakers so if you would like to be kept informed join our LinkedIn group and follow us on Twitter and Facebook. To learn more about UHY FDW YES contact Andrew Carroll andrewcarroll@fdw.ie +353 42 933 9955 #2018 #UHYFDWTeam

Capital Gains Tax Relief on properties owned for longer than 7 years, now reduced to 4 years. In the Finance Act 2017, a change was introduced to the 7-year capital gains tax exemption (CGT) for investors. The 7-year relief for CGT was introduced in 2012 and allowed for property acquired in the State or in any State in the European Economic Area from 7 December 2011 to 31 December 2014 being exempt from CGT on any gain arising on the disposal of that property. For example, say a property was purchased on 10 February 2012 and ultimately sold on 10 February 2019 with a gain arising of €50,000. In this scenario, the total gain would be exempt from capital gains tax as the property has been held for 7 years exactly. However, if the property is held for longer than 7 years, the Capital Gains Tax relief will only apply to the portion of the gain relating to the first 7 years of ownership. The balance is taxable in the normal way. So, say a property was owned for 12 years, realising a gain of €50,000 on disposal. In this situation, €29,167 of the gain is exempt from CGT (€50,000 * 7/12). The remainder of the gain, €20,833, is taxable at 33%. It should be noted that if the property is sold before it has been owned for seven years, the full gain would be taxable. The good news is that the Finance Act 2017 reduced the 7 year holding period to four years, so property owners are now able to sell the property after only owning it for four years, and still qualify for full exemption from CGT. This amendment applies to disposals occurring on or after 1 January 2018. Contact our Team Email Call Request a Call Back From Our Team #2018 #Property #TAX #Tax2017

Ireland’s Retail Sector & The Brexit-effect This blog discusses the Irish retail sector at the present moment, what can stimulate growth in the sector, and the potential roadblocks to growth that could be caused by the impending Brexit. Retail Sector Although growth in the retail sector has slowed, it still remains an important component of the Irish economy. In fact, the retail sector contributes over €7 billion euro in tax revenues, making it the biggest contributor to the Irish exchequer with ‘23% of total tax receipts in Ireland’. The sector generates over €30 billion euro in sales and it employs 14% of the Irish workforce. Consumer prices were down by 0.2% in the first half of 2017 because of deflation. Stimulating Growth Ibec has identified ways in which the Irish retail sector can increase its competitiveness, stimulate growth and improve performance. Ingraining government support in the retail sector, by providing tax credits to improve the ‘online sales’ capability’, reducing the cost of regulatory compliance in the sector, providing training and education programmes to enhance retail service performance and by regenerating areas in Ireland that have been ‘devastated by the recession’, are just a few ways Ibec has identified to spur growth and performance in the industry. Brexit-effect on the Irish Retail Sector There are several costs and regulatory implications for Irish retail due to Brexit. The drop in value of sterling after Brexit has had a negative effect on Irish retailers. In a time when “two-thirds of consumer spending online is fulfilled by businesses operating outside Ireland”, a weak sterling can continue to attract Irish consumers to UK businesses. After Brexit occurs, import prices for Irish retailers will be affected by exchange rate volatility. This exchange rate volatility could potentially discourage investment. Imports and the supply chain, in general, will be affected in ways other than prices: Product supply will be disrupted by Brexit enforced EU Customs controls, added supply chain costs for ‘product originating in or in transit through a non-EU territory’, and ‘regulatory divergence’ between jurisdictions will add costs for Irish retail businesses. The retail sector in Ireland is facing challenges, whilst government associations attempt to stimulate growth and profitability in the sector through a number of different ways. Sources: ( RTE , BBC , IBEC , businessworld.ie , Business Insider ) Contact our Team Email Call Request a Call Back From Our Team #2018 #BusinessAdvisory