Does anyone know if any major tax implication and directors comliance issues arise if for example a director of a company takes a loan from his father or mother to part finance a major project.
I'd assume the only implication would be that the transaction would have to be at arms lenght and a reasonable level of interest would need to be paid over.
Would it need to be repaid within a certain timeframe in full in order to not be deemed taxable under capital acquisitions tax?
Either really what do you think would make more sense?
From parent , this would be in personal capacity but obviously have to be repaid , is there a limit on timeframe in order to utilise a parent with cash resources but not to use up and trigger a tax bill on CAT i.e 2 years etc
To Company, if company folded this would probably not make as much sense unless it was set up as a secured creditor.
The CAT limits are very high. Your father can give you around €500k without triggering a tax liability and I presume that your mother can do the same.
If it's less than that, you don't have a problem. If it's more than that, then you should be doing more extensive and professional tax planning through a tax specialist.
If you are buying equipment, your parents could buy the equipment and lease it to the limited company. This would give them some security if the company fails.