Weekly Digest: Business, Financial, and Economic News from Ireland
Revenue Targets Cash Transactions and Bogus Self-Employment
Revenue in Ireland is intensifying scrutiny on cash-in-hand businesses and bogus self-employment arrangements. This initiative forms part of an accelerated compliance effort aimed at small businesses, particularly in the construction sector, driving instructors, couriers, and car washes. This move was highlighted during a presentation to key representatives from the main accountancy bodies, revealing a shift in focus for Revenue’s business division, which usually oversees compliance related to share schemes, tax credits, payroll, and capital taxes.
With the ongoing recovery from the Covid-19 pandemic, Revenue has ramped up compliance monitoring, utilizing advanced software to detect unusual patterns in tax data. Statistics show that the business division executed a staggering 65,317 interventions in 2024, a slight increase compared to the 65,163 interventions from January to October of the previous year.
This renewed focus follows the Supreme Court’s Karshan judgment, which classified delivery drivers for Domino’s Pizza as employees rather than independent contractors, emphasizing the importance of proper employment classifications. To address any prior misclassifications stemming from this ruling, Revenue has opened a settlement window, allowing businesses to disclose mistakes and arrange back taxes or phased payments, with a submission deadline set for 5 PM on Friday.
Frascati Shopping Centre on the Market
The Frascati Shopping Centre located in Blackrock, Dublin, is poised for sale. Owned by the US investment firm Invesco since its purchase for €68 million in 2015, the company has engaged Cushman & Wakefield to facilitate the sale process. The mall, which spans over 20,000 sq m, features prominent tenants such as Aldi and Boots, alongside newer additions like a medical center and gym.
Following a comprehensive redevelopment, Invesco and Burlington Real Estate enhanced the shopping experience with the addition of rental apartments. The centre is expected to be listed in March, although the asking price remains speculative, with estimates ranging from €70 million to €100 million. Invesco had previously attempted to market the center for €100 million but retracted the listing after reducing some debt obligations to Bank of Ireland.
Camgill Conway Acquires Meta’s Former Office
Camgill Conway, a Canadian-Irish real estate investor, has successfully purchased the Beckett Building, an office space in Dublin’s north docklands once occupied by Facebook parent company, Meta. The acquisition price remains undisclosed, but it aligns closely with the asking price of €25 million, a marked decrease from the €101 million paid by prior owner KB Kookmin Bank in 2018.
Initially marketed for €35 million in 2024, the building encountered a failed agreement with a storage company before returning to the market. Located within walking distance of the 3Arena, the Beckett Building was developed in 2007 and underwent upgrades in 2017. Meta vacated the building prematurely, seven years ahead of the lease expiration, though it remains accountable for the rental agreement until July 2027.
Galco Steel Set for Acquisition by Dot Nordic
In a notable development in the metal galvanising industry, Ireland’s leading galvanising company, Galco, is nearing a sale to Dot Nordic, a Danish company backed by the Lego family. Execs at Dot Nordic have established a special purpose vehicle to facilitate the purchase, with current shareholders’ future roles yet uncertain.
Founded in the 1960s, Galco operates from its headquarters in Dublin and several galvanising plants across Ireland. The company is renowned for its galvanising services used in various applications, including public infrastructure and artistic projects like the Gaiety Theatre canopy. Employing over 300 individuals and reporting revenues of approximately €46 million in 2024, Galco’s acquisition by Dot presents a significant development in the steel coating arena.
Powerscourt Distillery’s Financial Resurgence
Bala Venkataraman, a US-based pharmaceutical entrepreneur, has successfully acquired Powerscourt Distillery for €8 million, pulling it out of receivership. This acquisition marks a significant investment as Venkataraman, through Altiva Management Inc, aims to inject substantial capital into the operation. The distillery struggled amid a global oversupply of spirits, falling under the receivership of PNC Bank last June.
The deal includes not only the operational leasehold but also a large inventory of bulk whiskey. Venkataraman’s extensive involvement in the pharmaceutical industry positions him to infuse new life into the distillery, which had been facing significant operational challenges in a competitive market.
As Powerscourt navigates the complexities of the whiskey landscape, the industry is witnessing other major players facing similar difficulties, prompting closures and downsizing efforts across several distilleries. Despite these challenges, there is cautious optimism in the market, suggesting potential recovery and growth for Irish whiskey exports in the upcoming years.