ARTICLE
20 September 2011

Transaction With Irish Parent With US Or Other Listing Including Inverted Companies

MH
Mason Hayes & Curran

Contributor

As legal and regulatory responsibilities become more complex, progressive organisations need measured advice to help realise their ambitions. The expertise Mason Hayes & Curran brings is rooted in unrivalled knowledge of various industries, so the firm’s advice is always set in its commercial context. The firm solves the issues companies face today and anticipates the challenges they will face tomorrow. By tailoring its advice to its clients’ business and strategic objectives and giving them clear recommendations, Mason Hayes & Curran helps its clients to make good, informed decisions and to anticipate and successfully navigate even the most complex matters.
In late 2009 and early 2010 numerous multi-national corporates took steps to adopt a parent tax-resident and incorporated in Ireland.
Ireland Tax

In late 2009 and early 2010 numerous multi-national corporates took steps to adopt a parent tax-resident and incorporated in Ireland. Major multi-nationals, with Irish parents include Accenture, Cooper Industries plc, Covidien plc, CRH, Elan Corporation plc, ICON plc, Ingersoll-Rand plc, James Hardie Industries SE, Ryanair, Seagate Technology plc, Warner Chilcott plc, Willis Group Holdings plc and XL Group plc.

Two hurdles immediately arise where such companies undertake corporate activity:

i) notwithstanding their obligations under other legal codes, such companies must comply with the Irish Takeover rules, Irish capital maintenance requirements, and Irish requirements to disclose beneificial ownership of voting share capital.

ii) where such companies propose to issue shares to acquire assets, Irish stamp (transfer) duty at rates of up to 6% of the share consideration can arise. Such a charge arises where the share issuance is in respect of chargeable assets that are stampable as conveyance on sale. Exemptions apply for certain debt, intellectual property and foreign securities, but crucially acquisitions of Irish shares or foreign property can attract stamp duty.

Detailed structuring of the transaction for all parties to the transaction is key to avoid unlawful transactions and/or tax leakage irrespective of the governing law to the transaction documents.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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