# Urgent advice required!!



## bigfrankt2 (12 Jun 2008)

Hi Guys just want to know what you think of the following scenario ie. what are the main areas I should look at in an attempt to advise this client

Anne and Barry, owned a pharmacy.  They had set up the business from scratch and incorporated it seventeen years ago.  They were 50:50 shareholders, directors and employees of the company.  They were both 61 and had four adult children. Barry had a small occupational pension scheme through a major insurance company.

  Barry and Anne were looking to sell their business and had reached an agreement with a pharmacy chain to acquire it.  The purchaser had done its due diligence and was prepared to pay €5 million for the shares in the company.  However, the company had retained profits of approximately €2 million and the purchaser had indicated that it would be happy for Barry and Anne to withdraw these profits in return for a corresponding reduction in the purchase price.  

*Anne and Barrys' Objectives*

  Barry and Anne wanted to:

  ▪[FONT=&quot]         [/FONT]Withdraw the retained profits in the most tax-efficient manner.
  ▪[FONT=&quot]         [/FONT]After taking €500,000 for their immediate use, use the balance of the after-tax retained profits to put in place an investment fund that would allow them to invest in a wide range of assets, including property and equities.
  ▪[FONT=&quot]         [/FONT]Structure the sale of their business in the most tax efficient way.
  ▪[FONT=&quot]         [/FONT]Make a gift of approximately €2 million of the proceeds to their children, since the balance of the proceeds net of tax would, along with any investment fund and their existing assets, be sufficient to secure their own financial freedom/independence.



Any advice would be most appreciated guys thank you so much in advance


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## ShaneMc (12 Jun 2008)

For these sums of money I think professional advice is essential.


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## rmelly (12 Jun 2008)

Tell them to talk to a financial advisor?


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## irishlinks (12 Jun 2008)

bigfrankt2 said:


> H what are the main areas I should look at in an attempt to advise this client



It sounds like this is a financial advisor looking for advice!


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## bigfrankt2 (12 Jun 2008)

Hi Guys,

Not a financial advisor, I'm a student. I have to discuss this problem with tutor in form of a presentation.

Please help!!!


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## mercman (12 Jun 2008)

Without my being rude, but as other posters have already stated, it is a brave man that would dispose of an asset of such magnitude without paying a lousy few thousand euro on advice, Tax and otherwise. If you are an adviser, Frank, you would be etter pointing these people in a direction of a professional Tax consultant and by been honest could easily charge your own fee and sleep at night at the same time.


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## so-crates (12 Jun 2008)

bigfrankt, have you not done your homework? Are you trying to have us help you avoid doing the research yourself? This isn't a cheat site, if you haven't done your work at this stage it is your own lookout. Tutor's rarely set tasks for presentations that are beyond the reach of their students.


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## bigfrankt2 (12 Jun 2008)

OMG!!!

I'm not a tax advisor or anything like that. If these people existed do you think they'd come to me for advice? they're obviously quite intelligent people,  they'll not approach a 22 year who does his reserch on the internet.

i genuinely am looking for help with a project i was given,  please  give me a few pointers as i'm pretty stumped

when did the worls become so cynical???


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## mercman (12 Jun 2008)

OK so. The main pointer is to bring the matter to Professionals


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## so-crates (12 Jun 2008)

when it became June. Assignments are normally either handed in at this stage or in the process of being so.

Doing research is not the same thing as asking other people to do the work for you. You have basically listed the question you were set and are waiting "pen in hand" for the answers to drop in. Doing research involves you investigating the legitimate options available, not asking someone else to tell you.


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## bigfrankt2 (12 Jun 2008)

ok any advise on some websites i could check that would be useful here?


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## irishlinks (12 Jun 2008)

Just out of interest - what is the course you are doing?


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## rmelly (12 Jun 2008)

Have you not just spent a year in lectures, tutorials, studying etc to get to the point where you can answer the question yourself?

Is everyone in your class 'stumped'? You might want to reconsider your course choice...


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## so-crates (12 Jun 2008)

If I am right, it is late in the day for you to be starting this and I suspect classmates may be a better source of immediate info. This question is testing your knowledge of taxation on capital gains and gifts, options regarding pensions and investments and several other things. I would suggest that logically you start with your course notes as any assignment would be based on information discussed or lectured on during class time.

_Post crossed with rmelly_


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## Bronte (12 Jun 2008)

Poor student, as least you're doing something now albeit a bit late, how about recommending that Anne and Barry log on to AAM for the answer.........  Other solutions are bribe the tutor, ask another student what they are doing, steal another student's answer sleep with the tutor or look up your notes/books and figure it out for yourself - all of these are the tried and tested routes.   If you go searching through AAM for long enough especially in taxation you may find the answers there.


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## heretohelp (12 Jun 2008)

so-crates said:


> when it became June. Assignments are normally either handed in at this stage or in the process of being so.
> 
> Doing research is not the same thing as asking other people to do the work for you. You have basically listed the question you were set and are waiting "pen in hand" for the answers to drop in. Doing research involves you investigating the legitimate options available, not asking someone else to tell you.


 Give him a bloody break!!


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## so-crates (12 Jun 2008)

heretohelp said:


> Give him a bloody break!!


 Why?
I don't know about you but I really disapprove of cheating.
It is highly unlikely that this project was set for the OP to do and fail. Chances are (s)he has had at least a month to investigate and research the answer to this. (S)He has also had the benefit of lectures and tutorials, libraries, lecturers and peers, in addition to years of accreted wisdom published online. It is unreasonable that they can expect to complete an exercise that requires exertion on their part by asking someone else for the answer. The OP's class en masse hasn't turned up with the question on this website asking others to do their work so why should (s)he possibly get an unfair advantage? It is fairest to tell him to start the way that everyone else does, by looking at what is known, applying lessons learnt and using *research *to enrich not only the answer but the understanding.

Asking for clarification on a point or additional information is one thing and that is fair and right, asking for the answer is chancing your arm. Getting it is depriving your classmates of an equitable status, your tutor of a real assessment and your future of a real basis.

Anyway we have all left a project on the long finger and got burned by doing so. OP best of luck in your presentation, I do hope you learn enough to make a good one. If you don't just remember this is an exercise in learning, you haven't made anyone poorer by it.


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## Babycakes (12 Jun 2008)

My God! I can't believe your attitude to this poors guys question.
I'm sure hes only looking for advice and guidance as opposed to being a cheat! You obviously have never had a last minute assignment/ presentation to be handed in if you can judge so quickly.

We are all here to help!


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## xxx (12 Jun 2008)

Well Barry and Anne have come along way since they were in the garden and going to the shop buying icecream. Put if you are a student you should have the answers in your notes. This is not even an area for an accountant, the amounts involved would definately warrant a tax consultant.


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## W200 (12 Jun 2008)

With a work ethic like that I would dread having you as a financial advisor if that is the area you plan to gain employment in eventually


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## so-crates (12 Jun 2008)

Babycakes said:


> You obviously have never had a last minute assignment/ presentation to be handed in if you can judge so quickly.


 


so-crates said:


> _*Anyway we have all left a project on the long finger and got burned by doing so.*_ OP best of luck in your presentation, I do hope you learn enough to make a good one. If you don't just remember this is an exercise in learning, you haven't made anyone poorer by it.


 
No Babycakes, as indicated I certainly have had my share of late projects, invariably it has been my own fault and I have had to learn to take on the chin what I didn't take on board. 

At the end of the day it is a learning exercise for the OP, (s)he doesn't do it, (s)he doesn't learn. 
That isn't cruel or unreasonable, it is sensible. 
The OP is 22. They are studying a serious course. Their tutor has asked them to demonstrate that they can give advice on a relatively complex area with legal and taxation implications as well as quality of life for a "client". What happens if this becomes a real life scenario? 

I don't wish them to fail, but if they deserve to pass, they won't need to ask others to do their own work for them.



Babycakes said:


> We are all here to help!


In exactly what way? By slapping my wrist?


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## so-crates (12 Jun 2008)

xxx said:


> Well Barry and Anne have come along way since they were in the garden and going to the shop buying icecream.


 
Weren't Anne and Barry brother and sister????


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## Welfarite (12 Jun 2008)

I love this thread! Pity OP was so honest and told us that it was for a thesis or whatever! How many others have used AAM for such purposes, one wonders?!?!


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## so-crates (12 Jun 2008)

It was the past tense in the original query that raised my eyebrows, who asks for financial advice on behalf of dead people? Followed by the amount of advice needed, I was convinced without their honesty that it had to be an assignment 

Oh and Anne and Barry ... that just looked bizarre


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## extopia (12 Jun 2008)

OMG!!! (As the OP would say)

Knew this was an exam question the second I set eyes on it...

What a chancer... Imagine if this guy qualifies as a tax advisor based on this approach to exam questions / assignments.

And next year, one of us shows up in his office for advice.


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## DrMoriarty (12 Jun 2008)

OK, enough already. Thread closed.

Back to the books, Frank.


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