Tax auditor PwC trebles Galway workforce

One of the country’s ‘big four’ tax auditors has announced a major expansion of its Galway operations – labelling it as a vote of confidence in the continued growth of business and industry across the west.

PwC’s expansion will also see the country’s largest professional services firm relocate its Galway base from its existing Tuam Road facility into the city centre – and it has also resulted in a number of new senior appointments.

PwC Galway Tax Partner Mairead Connolly described the expansion as a response to increased demand – particularly from SMEs – and a chance to increase the company’s range of services.

“We have seen the economy bouncing back quite strongly – but particularly in Galway and its hinterland which, from our experience, is outstripping other regions,” she said.

The Limerick native works between PwC’s Galway and Limerick offices – indeed the Limerick native is married to a Claregalway man, so on many fronts she has a foot in both camps.

And she revealed that the decision to expand will see the workforce grow from 25 to 70 over the next few years, with a combination of experience tax practitioners and new third-level graduates in keeping with their current policy of recruiting the brightest and best through NUI Galway.

“Galway is synonymous with a strong med-tech sector, and that spawns a significant number of start-ups and entrepreneurial activities,” she says.

“We’ve done a lot of work with many of those entrepreneurs over the last few years; they had the successful products and ideas, but it’s often a question of getting their affairs in order so that, for example, they don’t lose so much in tax when they sell,” she adds.

PwC’s expansion also allows them to develop their own range of services, because up to now they were primarily concerned with audit and tax services, which will now grow to encompass corporate finance and business services.

One of the key new arrivals at PwC is Florita Dolly, who joins as a Tax Director within the Galway office.

The Abbeyknockmoy native previously worked with the Revenue Commissioners in Galway, where she spent over seven years as Assistant Principal.

And having moved from one side of the tax equation to the other, she has a list of aspirations that she hopes Finance Minister Paschal Donohue will tackle in his upcoming budget – not least to ensure continued growth here, irrespective of the Brexit outcome.

“Galway has a strong record for start-ups, particularly in the med-tech sector, and typically the ultimate aim is to grow the business for sale.

“Therefore the whole question of tax relief for entrepreneurs is one we’d like to see movement on – specifically in the area of Capital Gains Tax which is at ten per cent, but is capped at €1m.

“That is capped at €10 million in the UK, which gives a clear advantage to entrepreneurs across the border as it stands, never mind post-Brexit,” she says.

Brexit is a question occupying so much of the public space just now, with the impact on either the UK or Irish economy still unclear.

But Mairead Connolly admits that, whether hard or soft, the outcome ‘will not be pretty’.

That said, she also sees ways that the Minister can lessen the impact here by improving the taxation landscape for investors and for SME’s in particular.

“The Department of Finance recently reviewed the Enterprise Investment Incentive Scheme which offers a 40% tax right-off on investments for SMES, which is very favourable . . . if you can get it.

“But the conditions have been tightened to the extent that investors have to be independent of the business itself. In our experience, those most likely to invest know the business and indeed those running the business – which is why we would like to see this scheme broadened out to facilitate that,” she says.

Research and Development is also excluded from the EIIS – something that PwC would like to see altered in advance of the Brexit outcome.

But most of all, Mairead believes we need to see more investment in the regions – in infrastructure, technology and connectivity.

“Outside the Pale, that is a much greater challenge to business – as is the lack of skills and key talent in some sector.

“Strong employment levels often mean that SME’s and family businesses struggle to recruit and hold onto staff – and that’s an area the state could also incentivise,” she says.

Florita points specifically to KEEP (or Key Employment Engagement Programme) Scheme which Minister Donohue introduced in last year’s budget.

This allows owners to allocate shares to employees in a tax efficient manner to avoid losing key staff, by giving them a direct interest in the company – but again there are restrictions that PwC would like to see loosened.

“Bonuses like this for loyalty incentivise all involved to grow the company – and that’s the key to success,” she says.