Module 6: 08.10 – 09.40am (1.5 Management / General CPD Points)

Tuesday 4th December 2018 = Seminar 6(a) in the Postal Booking Form

Tuesday 11th December 2018 = Seminar 6(b) in the Postal Booking Form

Tax-Incentivise Your Practice

‘How Proper Tax Planning Can Actually
Grow Your Practice & Unlock Its Value To Release Equity’

Shouldn’t a practice be like any ‘asset’: working it should yield an ongoing dividend, while also building up an appreciating ‘capital value’ or equity that can be unlocked and liquidated when the right time comes. None of us would buy, say, a rental property without both strands, yet when it comes to our practices most of us focus on the former to the detriment of giving precious little thought to the latter?

For a sole practitioner or partner, a myopic approach to your practice is a ticking time bomb. “Shur, why change anything, isn’t the practice going great“. But do you know how your resistance, fear or misunderstanding of what you perceive as unnecessary ‘change’ today may cost you dearly in the long-run?

Change is good“……right? Certainly when it is the key to enabling you to achieve, preserve and grow capital value in your practice to ultimately release that equity and turn it into cash.

A typical example – your junior solicitor expects a partnership, maybe not today, but at some stage. But you’ve built up your practice from scratch, so why would you possibly ‘give away’ a partnership to this young whipper-snapper who is already being paid well for doing the work!

So, what happens in this situation all too often? Your reluctance or simple failure to make proper or timely growth or succession planning for yourself/the practice causes your assistant solicitor to eventually get tired of waiting, so s/he leaves and, before you know it, your practice is no longer an ‘asset’ with disposable value, but is instead a noose and lost opportunity for an orderly sharing of the burden, exit or pension payout.

Fergal Cahill, Tax Consultant of CTS Taxation Services will tell us why “change IS good”, giving us plenty of interesting anecdotal examples of what structures have and haven’t worked, and how the lack of any has gone spectacularly wrong for practitioners.

Fergal will illustrate how tax strategising for your practice today with an eye on the future is easier than you think, and you may be pleasantly surprised to know how the tax treatment of those strategies (e.g. hiring, mergers, partnerships, etc.) can yield substantial financial benefits down the line that may, in fact, encourage you to loosen your grip on the reins today and actually embrace change!.


Fergal Cahill is Managing Director of Cahill Taxation Services, and a Chartered Tax Adviser, having spent a number of years in PwC, KPMG and FGS in both Limerick and Dublin, before setting up Cahill Taxation Services in Ennis, Co Clare, in February 2007.