Navigating the Risks of AI: How to Protect Your Business from Deepfake Fraud and AI-Driven Scams

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In the digital age, the innovation of artificial intelligence (AI) has brought about significant advancements in many sectors of business. However, it has not been without its controversies and issued. From the fear of roles being replaced by AI to the ongoing argument regarding the use of AI art and the associated copyright issues, this continues to be a contentious issue.

As well as these issues, AI has unfortunately also opened up new avenues for fraudsters to exploit. This can be seen in the recent case of ARUP, where deepfake technology was used to deceive an employee into transferring a substantial sum of money to criminals. This incident serves as a stark reminder of the potential risks associated with AI and identity fraud.

The rise of AI-powered scams, such as so called “deepfakes”, poses a significant threat to personal and corporate security. Deepfakes are hyper-realistic audio or video forgeries created with AI, capable of impersonating individuals with alarming accuracy. The ARUP case exemplifies the level of sophistication these scams have reached, with fraudsters successfully mimicking senior company officers to orchestrate a £20 million fraud.

For businesses, the implications are clear: there is an urgent need to enhance security protocols and educate employees about the dangers of AI-facilitated fraud. staying informed about the latest fraud trends and implementing robust measures, companies can build a resilient defense against these evolving threats.

The ARUP case is a cautionary tale that underscores the importance of vigilance in the face of AI-driven online fraud. It is imperative for businesses to stay abreast of latest changes and innovations in order to navigate the complexities of digital security and protect their assets and reputation in this ever-changing landscape. As AI continues to advance, so too must our strategies to counteract its malicious use.

So, what can companies do to combat this level of sophistigated fraud?

To combat AI-driven fraud, companies can adopt a multi-faceted approach.

  • Quality: Investing in quality data is crucial. Having access to comprehensive and accurate data sets is essential for training effective AI models.
  • Management: Establishing a cross-functional fraud management team can ensure that various perspectives are considered when addressing fraud risks.
  • Monitoring: Continuous monitoring and updating of AI systems is necessary to keep up with evolving fraudulent tactics.
  • Early Detection: Developing a comprehensive fraud detection strategy that includes investing in the right tools and practicing ethical data usage is also important.
  • Simulation: Additionally, simulating attacks can help test the robustness of fraud prevention systems.

Finally, fostering a culture of security within the organization can raise awareness and improve the overall response to fraudulent activities. These steps, when implemented effectively, can significantly reduce the risk of AI-driven fraud, adding an extra layer of protection for your business and your employees.

Minimise Tax Liabilities in Your Succession Planning

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At EcovisDCA, we understand that effective succession planning goes beyond merely passing assets to the next generation. It involves thoughtful consideration of how to minimise tax liabilities such as Capital Acquisitions Tax (CAT), ensuring your loved ones inherit as much as possible. Here’s a comprehensive guide to navigating CAT in your estate planning strategy.

 

1. CGT/CAT Offset:
When gifting assets during your lifetime, both Capital Gains Tax (CGT) and CAT may apply. The good news is that you can offset CGT paid against CAT liabilities arising from the same gift, avoiding double taxation. However, this offset isn’t applicable for inherited assets, as CGT isn’t triggered upon inheritance.

2. Insurance Policies:
Consider taking out insurance policies to cover potential CAT liabilities upon your death. The proceeds from such policies used to settle CAT are themselves exempt from further CAT. This strategy ensures that your beneficiaries aren’t burdened with unexpected tax bills.

3. Direct Payment of CAT:
You can opt to pay the CAT liability arising from a gift or inheritance on behalf of the recipient. While this adds to the total value considered for CAT calculations, it can be a strategic way to reduce the financial impact on your beneficiaries.

4. Utilizing Small Gift Exemption:
The small gift exemption allows for tax-free gifts of up to €3,000 per annum from any individual. Leveraging this exemption early and regularly can accumulate significant sums over time, reducing future CAT liabilities. For instance, parents can gift €3,000 annually to each child, building a tax-efficient legacy.

5. Group Tax-Free Thresholds:
Maximize the use of Group Tax-Free thresholds by strategically directing assets. For example, consider gifting assets directly to grandchildren after children have maximized their €335,000 threshold. This approach optimizes tax efficiency and ensures assets pass smoothly through generations.

6. Special Reliefs: Business and Agricultural Relief:
For clients involved in family businesses or farms, special reliefs like Business Relief and Agricultural Relief can substantially reduce CAT liabilities. However, these reliefs come with stringent conditions and require careful planning to fully utilize. Proper structuring and compliance with regulatory requirements can safeguard these valuable reliefs.

 

The Importance of Early Planning:

Succession planning should start early to maximize tax efficiencies and minimize surprises. Unplanned estates can lead to unexpected CAT liabilities, affecting the financial well-being of your heirs. At EcovisDCA, our expertise in estate planning ensures that your succession plan is not only tax-efficient but also aligned with your long-term goals.

 

Expert Guidance for Your Succession Plan:

Navigating CAT and other tax implications requires expert advice. Whether you’re planning to gift assets or pass on a family business, we’re here to help you achieve the best possible outcome for your loved ones.

 

Contact Us Today:

Don’t wait until it’s too late. Start planning your succession strategy with EcovisDCA to secure a prosperous future for your family. Reach out to our experienced advisors for a consultation tailored to your needs. Together, we’ll create a roadmap that preserves your legacy while minimizing tax burdens.

What is the Local Authority Purchase and Renovation Loan (LAPR)?

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At EcovisDCA, we understand that securing financing for property purchase and renovation can be a challenge, especially for derelict or non-habitable homes. If you’re looking to breathe new life into a vacant property but can’t get sufficient funding from commercial lenders, the Local Authority Purchase and Renovation Loan (LAPR) could be the solution you need.

 

What is the Local Authority Purchase and Renovation Loan?

The LAPR is a government-backed mortgage and loan specifically designed to assist with the purchase and renovation of derelict, non-habitable, or simply vacant homes that qualify for the Vacant Property Refurbishment Grant (VPRG). This initiative aims to address the housing crisis by transforming neglected properties into liveable homes.

 

Who Can Apply for LAPR?

If you plan to purchase and/or renovate a home eligible for the VPRG but face difficulties securing sufficient funds from commercial lenders, you can apply for the LAPR through your local authority. The amount you can borrow depends on the type of renovation required and the estimated value of your home post-renovation.

 

Types of Projects Covered:

The LAPR supports three types of renovation projects:

  1. Vacant Property and Minor Works: Renovations that don’t meet the criteria for major works.
  2. Vacant Property and Major Works: Major renovations as defined by Building Regulations, involving less than 25% of the building’s surface area.
  3. Derelict Property: Renovation of properties eligible for the VPRG Derelict Top-Up.

 

Key Features and Benefits of LAPR:

One of the standout features of the LAPR is the availability of a cheaper bridging loan, equal to the amount of the VPRG. This loan is repayable once the grant is paid out, offering several advantages:

  • Increased Borrowing Capacity: The bridging loan boosts your borrowing capacity, allowing you to fund renovations that might not be feasible with traditional bank loans.
  • Improved Project Viability: The loan’s repayment is based on the VPRG, meaning the LAPR considers the project cost net of the grant. This improves the viability of your renovation project.

 

Eligible Properties

To qualify for the LAPR, properties must meet the following criteria:

  • Vacancy Period: The property must have been vacant for more than two years.
  • VPRG Criteria: The property must meet all other criteria for the Vacant Property Refurbishment Grant.
  • Principal Residence: The renovated house must be your private principal residence.
  • Value Limits: The estimated value of your home post-renovation must not exceed local authority price limits, which are as follows:
    • €360,000 in Dublin, Kildare, or Wicklow
    • €330,000 in Cork, Galway, Louth, or Meath
    • €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath, or Wexford
    • €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo, or Tipperary

 

Why Choose LAPR?

By choosing the LAPR, you gain access to a supportive financial solution tailored to transforming vacant properties. It not only enhances your borrowing capacity but also ensures your project is financially viable, making it easier to turn a neglected house into a beautiful home.

 

Get Expert Advice

Navigating the intricacies of the LAPR can be complex. At EcovisDCA, our experienced advisors are here to guide you through every step of the process. Contact us today for personalized advice and support to make your renovation dreams a reality.

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We hope that this information has been useful for you and as always, Please do not hesitate to contact us.

Dealing with Revenue’s Level 1 Interventions Correctly

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For businesses operating in Ireland, it is crucial to understand how to effectively handle Level 1 interventions initiated by Revenue. It has recently been announced by Revenue that many businesses are failing to deal with these in the correct manner, which can become problematic for both Revenue and the businesses themselves.

Level 1 interventions are preliminary inquiries that Revenue conducts in order to ensure compliance with tax obligations. This is another effort by Revenue to clamp down on non-compliance and usually takes the form of requests for information, clarification or documents. These requests can be randomly selected, and do not necessarily indicate any discrepancies being found in your information.

Here, we will run through the most important tips for dealing with Level 1 interventions correctly.

  1. Prompt Response:
    Timing is crucial in terms of Level 1 Interventions. Revenue set specific deadlines to avoid potential penalties or the escalation of the issue, which both parties will want to avoid.
  2. Understanding:
    Reading the communication from Revenue in detail is vital. Ensure that you fully understand the requests being made of you, before beginning your data gathering or response.
  3. Professional Advice:
    If you are unsure of how to respond, there are a great number of professional entities who are qualified and happy to assist you in order to ensure compliance. EcovisDCA being just one of these.
  4. Double Check Information:
    We would always advise clients to double and triple check the information before sending it on to Revenue, as any discrepancies will be picked up on and may cause issues down the line.
  5. Honesty is the Best Policy:
    In the event of a delay in your data gathering, we would always advise that Revenue be informed ASAP in order to inform them of the issue and to request an extension of the deadline if needed.
  6. Evidence:
    Always keep copies of all documents issued as well as your correspondence with Revenue. In the event of any issues, it is always wise to have a paper trail to look back on.

Dealing with these interventions may seem like a time-consuming and difficult task, but by employing the tactics listed above, you can condense the experience into a manageable task which can be completed with ease.

Benefits of Establishing a Holding Company in Ireland

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Ireland is renowned as an attractive location for groups/companies looking to set up holding company structures due to its competitive tax regime and favourable business environment. Ireland is usually the location of choice for businesses seeking to minimise their tax liability while setting up or expanding their operations in Europe. This has become even more prevalent post Brexit.

We set out below the main benefits of setting up such a structure and operating in Ireland.

  • Dividends received by Irish resident companies from Irish resident companies are exempt from taxes – withholding and corporate.
  • Foreign dividend income received by Irish resident companies from trading subsidiaries in either an EU member state or a country with which Ireland has concluded a double tax treaty, and where that dividend has been paid out of trading profits, is taxed at the 12.5% trading rate of corporation tax.
  • A system of foreign tax credits exist so that, with appropriate planning, it may be possible to ensure that no Irish tax arises on foreign dividends received.
  • Favourable tax and capital allowances regimes relating to Research & Development and intellectual property.
  • Group structure benefits – transfer of assets within an EU Group, surrender and claims of losses, where relevant, cross charges, among others.
  • Access to a skilled workforce/manpower.
  • Stable economic climate as well as transparent legal and regulatory frameworks.
  • CGT exemption (Participation relief) on qualifying subsidiary disposals (domestic and foreign). The exemption will apply to the disposal of shares in trading companies where the companies are resident in an EU member state or in countries with which Ireland has concluded a double taxation agreement – see above.

The above features, coupled with Ireland’s investment friendly policies make it an ideal location for companies seeking to enhance their financial efficiency and presence in the EU.

Our team can provide you with comprehensive advice on the establishment of a holding company in Ireland, including tax implications, regulatory compliance, and other legal requirements.