Examining succession and tax planning in family businesses in Ireland

Death and taxes are reputed to be the only guaranteed inevitabilities to face everyone of us at some point. However, research carried out in Ireland indicates that the vast majority of family businesses do not plan adequately for succession. 1,2 According to an article by Karina corbett, 3 family-owned firms make up 90 percent of the indigenous business sector in Ireland and provide approximately 50 percent of employment. Given that a significant portion of start-up businesses are owner-managed or family-owned, it is a worrying statistic that only 27 percent of family businesses successfully pass to the second generation and 13 percent to the third. 4 Why do so many thriving family businesses fail to succeed after the first generation? It appears that the answer may Examining Succession and Tax Planning in Family Businesses in Ireland Elaine Doyle Lecturer, University of Limerick Dr Naomi Birdthistle Lecturer, University of Limerick Adrian Godwin Godwin and Co Taxation Consultants