Monday 23 April 2018

What it says in the papers: business pages

Paul O'Donoghue

Here are the main business stories from this morning's papers:

Irish Independent:

***A Cork-based software company that employs 300 people has been acquired by the US investment firm whose founders are linked with buying Everton football club.

CoreHR, which develops and sells payroll and attendance software that is used extensively in Irish government and private multinational companies, has sold a majority interest in the company to the Baltimore-based equity firm JMI Equity.

The US company has almost €1bn invested in 34 technology companies. Financial terms of the transaction were not disclosed.

***Security giant Tyco International and manufacturing multinational Johnson Controls will save $150m (€138.5m) in taxes annually when they merge and  move their combined headquarters to Ireland.

Cork-based Tyco, valued at $13bn, specialises in fire protection systems while US-based Johnson Controls, which has a market value of $23bn, makes heating and ventilation systems and car batteries.

Although Tyco moved its global headquarters from Switzerland to Cork in 2014, the company was founded in the US and has the majority of its operations there. Its operational headquarters is in Princeton, New Jersey.

***The need for public money to deal with troubled banks in the future can’t be ruled out, a top European Commission official has said.

But if and when that’s required, it has to be a last resort, and on a mutualised basis, said John Berrigan, the deputy director general for Financial Stability, Financial Services and Capital Markets Union at the European Commission.

“While the construction of Banking Union is predicated on the need to weaken the link between banks and sovereigns, we simply cannot assume that no public funding will ever again be needed in relation to banking,” Mr Berrigan told the Institute of International and European Affairs (IIEA).


Irish Times:

***Facebook’s corporate vehicles in Britain and Ireland have warned of “potential tax reassessments” dating back to 2009.

In regulatory filings the US tech giant said it will defend “any and all such claims” although it recognised a “possible, but not probable” liability.

Accounts for Facebook Ireland Ltd, which were signed off less than two months ago, take note of contingent liabilities not recognised in the financial statements.

***Ireland faces a “high” level of risk in the medium term due to its levels of debt, according to a new European Commission report.

Although the report notes that ireland does not face sustainability risks within the next year it says public debt remains a source of vulnerability for the Irish economy.

The commission's “fiscal sustainability” report places Ireland alongside countries such as Britain, Belgium and Finland in a group of nations that face potential medium term risks.

***Irish law firm Mason Hayes & Curran reported increased revenues of €72m last year following strong growth across all activity of its business.

The €72m turnover represented a 20pc year-on-year rise. Last year was the second year in a row that the company increased its revenues by €12m.

The company added 75 new staff during the period. It now employs a total of 420 people.


Irish Examiner:

***Finance Minister Michael Noonan has said the European Commission is expected to signal next week that it will loosen fiscal rules that will allow Ireland to spend an extra €1.5bn in future budgets.

This would potentially allow the government to spend at least €12bn on public services and tax cuts over the next five years.

In a letter to Fianna fail finance spokesman Michael McGrath over the weekend Mr Noonan said the commission is likely to ease the medium-term restrictions in the coming days.

***Low-cost carrier Norwegian Airlines says that it still plans to offer a transatlantic service from Cork in May.

The confirmation followed reports yesterday that the airline planned to delay the service.

A spokesman for the company said its position may have been “lost in translation” following reports in a Norwegian newspaper that said the launch may be deferred over a delay in issuing permits.

***Ireland will be forced to ban many of the tax advantages it offers multinational companies under new proposals to be published by the european Commission tomorrow.

It will be the first step in an effort to homogenise tax rules across the 28 country bloc in an effort to stop companies taking advantage of lower-tax member states.

The proposals would ensure companies would not be able to shift high-interest inter-company loans to subsidiaries in high-tax countries, allowing them to offset it against their tax liability.

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