Group Tax Restructuring

 

Situation/Challenges:

To protect the cash resources of the companies from:

  1. Declining trading conditions.
  2. Landlords – and arguments for increased rent.
  3. The devotion of the owners to the companies. This is most important as we moved €1million tax free to a private investment vehicle to make sure the owners were financially secure and to provide strict focus on commercial viability of each restaurant.

Action/Solution:

  • Provided independent experts to confirm the appropriateness and legality of the advice and prepare the detailed submissions.
  • 5 years after we constructed a group structure over the 3 restaurants, which released €1.5million of cash at 20% to the Directors, we unravelled the Group Structure.
  • Strategy involved building a fact based business case for each company that could withstand an independent tax or legal review, including creating the paper trail to support the decisions and future action.

Client Result:

The detailed business plan permitted the client to:

  • Ring-fence the historical cash reserves of the group and its commercial property in an independent investment vehicle.
  • Helped the client to define the business and management development plan with detailed steps and targets for next five years.
  • Construct and have ownership of the retirement planning including the exit strategy from the business.