Doing Business 2020 Ireland Economy Profile Ireland Page 1 Doing Business 2020 Ireland Economy Profile of Ireland Doing Business 2020 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Employing workers Flexibility in employment regulation and redundancy cost Page 2 Doing Business 2020 Ireland About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation. These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. To learn more about Doing Business please visit doingbusiness.org Page 3 Doing Business 2020 Ireland Ease of Doing Business in DB RANK DB SCORE Region OECD high income Ireland Income Category High income 24 Population 4,853,506 79.6 City Covered Dublin Rankings on Doing Business topics - Ireland 4 13 23 19 36 47 48 52 60 91 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Topic Scores 94.4 76.6 84.2 71.7 70.0 80.0 94.6 87.2 57.9 79.2 Starting a Business (rank) 23 Getting Credit (rank) 48 Trading across Borders (rank) 52 Score of starting a business (0-100) 94.4 Score of getting credit (0-100) 70.0 Score of trading across borders (0-100) 87.2 Procedures (number) 3 Strength of legal rights index (0-12) 7 Time to export Time (days) 11 Depth of credit information index (0-8) 7 Documentary compliance (hours) 1 Cost (number) 0.1 Credit registry coverage (% of adults) 94.4 Border compliance (hours) 24 Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 100.0 Cost to export Documentary compliance (USD) 75 Dealing with Construction Permits (rank) 36 Protecting Minority Investors (rank) 13 Border compliance (USD) 305 Score of dealing with construction permits (0-100) 76.6 Score of protecting minority investors (0-100) 80.0 Time to export Procedures (number) 10 Extent of disclosure index (0-10) 9.0 Documentary compliance (hours) 1 Time (days) 164 Extent of director liability index (0-10) 8.0 Border compliance (hours) 24 Cost (% of warehouse value) 4.1 Ease of shareholder suits index (0-10) 9.0 Cost to export Building quality control index (0-15) 13.0 Extent of shareholder rights index (0-6) 5.0 Documentary compliance (USD) 75 Extent of ownership and control index (0-7) 3.0 Border compliance (USD) 253 Getting Electricity (rank) 47 Extent of corporate transparency index (0-7) 6.0 Score of getting electricity (0-100) 84.2 Enforcing Contracts (rank) 91 Procedures (number) 5 Paying Taxes (rank) 4 Score of enforcing contracts (0-100) 57.9 Time (days) 85 Score of paying taxes (0-100) 94.6 Time (days) 650 Cost (% of income per capita) 57.1 Payments (number per year) 9 Cost (% of claim value) 26.9 Reliability of supply and transparency of tariff index (0-8) 8 Time (hours per year) 82 Quality of judicial processes index (0-18) 8.5 Total tax and contribution rate (% of profit) 26.1 Registering Property (rank) 60 Postfiling index (0-100) 93.4 Resolving Insolvency (rank) 19 Score of registering property (0-100) 71.7 Score of resolving insolvency (0-100) 79.2 Procedures (number) 5 Recovery rate (cents on the dollar) 86.1 Time (days) 31.5 Time (years) 0.4 Cost (% of property value) 6.5 Cost (% of estate) 9.0 Quality of the land administration index (0-30) 23.5 Outcome (0 as piecemeal sale and 1 as going 1 concern) Strength of insolvency framework index (0-16) 10.5 Page 4 Doing Business 2020 Ireland Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the (number) procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited • Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office. • Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for the home to register the company the second largest business city. • Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily Time required to complete each procedure (calendar days) polluting production processes. • Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits. -Is 100% domestically owned. • Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the start on the same day) company shares, two owners have 20% of shares each, and two owners have 15% of shares • Procedures fully completed online are recorded as ½ day each. -Is managed by one local director. • Procedure is considered completed once final document is received -Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals. • No prior contact with officials -Has start-up capital of 10 times income per capita. -Has an estimated turnover of at least 100 times income per capita. Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate. capita) -Has an annual lease for the office space equivalent to one income per capita. • Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet). -Has a company deed that is 10 pages long. • No professional fees unless services required by law or commonly used in practice The owners: Paid-in minimum capital (% of income per capita) -Have reached the legal age of majority and are capable of making decisions as an adult. If there • Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old. or up to 3 months after incorporation -Are in good health and have no criminal record. -Are married, the marriage is monogamous and registered with the authorities. -Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population. Page 5 Doing Business 2020 Ireland Starting a Business - Ireland Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement No minimum City Covered Dublin Indicator Ireland OECD high income Best Regulatory Performance Procedure – Men (number) 3 4.9 1 (2 Economies) Time – Men (days) 11 9.2 0.5 (New Zealand) Cost – Men (% of income per capita) 0.1 3.0 0.0 (2 Economies) Procedure – Women (number) 3 4.9 1 (2 Economies) Time – Women (days) 11 9.2 0.5 (New Zealand) Cost – Women (% of income per capita) 0.1 3.0 0.0 (2 Economies) Paid-in min. capital (% of income per capita) 0.0 7.6 0.0 (120 Economies) Figure – Starting a Business in Ireland – Score 88.2 89.4 99.9 100.0 Procedures Time Cost Paid-in min. capital Figure – Starting a Business in Ireland and comparator economies – Ranking and Score DB 2020 Starting a Business Score 0 100 98.2: Canada (Rank: 3) 94.6: United Kingdom (Rank: 18) 94.4: Ireland (Rank: 23) 93.1: France (Rank: 37) 91.3: Regional Average (OECD high income) 83.7: Germany (Rank: 125) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6 Doing Business 2020 Ireland Figure – Starting a Business in Ireland – Procedure, Time and Cost Time (days) Cost (% of income per capita) 0.12 10 Cost (% of income per capita) 0.1 8 0.08 Time (days) 6 0.06 4 0.04 2 0.02 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 7 Doing Business 2020 Ireland Details – Starting a Business in Ireland – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 File necessary materials with the Companies Registration Office (CRO) 3 days EUR 50 for with pre- Agency : Companies Registration Office approved memorandum A founder may register a company at the Companies Registration Office (CRO) by three methods: and articles, EUR 100 for 1. The CORE registration system, in which the papers for incorporation are lodged in print and standard registration electronic form. Under this scheme, the constitution must be submitted in CRO• preapproved format. After the documents are filed, the CORE incorporates the company within 5 working days (typically within 3 working days). 2. A “Fe Phrainn” system, in which (as detailed in the first method) the incorporation documents are submitted to the CRO in a preapproved format. Under this method, however, documents are submitted in print form only, and the CRO incorporates the company within 10 working days. 3. An alternate system in which the incorporation documents are submitted to the CRO in print form, but the constitution are not in a preapproved format. In this instance, the CRO incorporates the company in 2–4 weeks. To access the first two systems, to the company founder must apply to the CRO for an access number and have the constitution approved in advance. Usually only professional agencies use the expedited systems. Necessary documents for limited companies: • Constitution.. • List of directors, secretary, and subscribers. • Statement of nominal (authorized) and issued share capital and consideration paid. • Notice of registered office. • Statement of the main business activities and the address where they will be carried out, contained in a statutory notice sent to the CRO. Forms can be downloaded from the CRO Web site. For all methods, a CRO Form A1 must be submitted with details of the company name, the first election of directors and secretary, and the subscribers to the constitution; the authorized and issued share capital; and the registered office and the details of the location in the state where the central administration and the main company activities are proposed to be undertaken. The constitution, signed by the subscriber shareholders, will also be submitted to the CRO. Since September, 2009, it is possible to reserve the proposed company name in advance of submitting the incorporation papers. The advantage of this is that it avoids the rejection of the proposed name by the Companies Registration Office either because it has already been taken or because it is inappropriate for some other reason (such as public policy). There is a fee charged of EUR 25 but this fee is then taken off the incorporation fee meaning that there is in effect no cost. A registration fee of EUR 100 is charged for each model constitution registered with the Office. However, the use of the model company incorporation documents, using the CRO disk system, will result in a reduced incorporation fee of EUR 50. The company registration fee for procedures other than the new ones is EUR 100. 2 Obtain a company seal 1 day EUR 20.28 Agency : Sealmaker In addition to getting a company seal, the company must keep the statutory registers for the directors and shareholders. 3 Register for corporation tax, social insurance (PAYE/PRSI), and VAT with the Revenue 1 week no charge Commissioners Agency : Revenue Commissioners To register for corporation for VAT taxes and for social insurance (PAYE/PRSI) with the Revenue Commissioners, the company must file Form TR2. The Tax Identification Number is needed only when the company must pay year-end taxes. Upon entering form data into the Commissioners database, the company is immediately registered for PAYE/PRSI. Takes place simultaneously with previous procedure. Page 8 Doing Business 2020 Ireland Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates The construction company (BuildCo): • Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest inspections business city. For 11 economies the data are also collected for the second largest business city. • Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects • Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed Time required to complete each procedure (calendar days) experts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse upon its • Does not include time spent gathering information completion. • Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule The warehouse: • Procedure is considered completed once final document is - Will be used for general storage activities, such as storage of books or stationery. received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be • No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of income per - Will have complete architectural and technical plans prepared by a licensed architect. If capita) preparation of the plans requires such steps as obtaining further documentation or getting prior • Official costs only, no bribes approvals from external agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory Building quality control index (0-15) requirements). • Quality of building regulations (0-2) The water and sewerage connections: • Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water • Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage • Quality control after construction (0-3) infrastructure, a septic tank in the smallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow • Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and • Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9 Doing Business 2020 Ireland Dealing with Construction Permits - Ireland Standardized Warehouse Estimated value of warehouse EUR 2,607,072 City Covered Dublin Indicator Ireland OECD high income Best Regulatory Performance Procedures (number) 10 12.7 None in 2018/19 Time (days) 164 152.3 None in 2018/19 Cost (% of warehouse value) 4.1 1.5 None in 2018/19 Building quality control index (0-15) 13.0 11.6 15.0 (6 Economies) Figure – Dealing with Construction Permits in Ireland – Score 80.0 60.2 79.4 86.7 Procedures Time Cost Building quality control index Figure – Dealing with Construction Permits in Ireland and comparator economies – Ranking and Score DB 2020 Dealing with Construction Permits Score 0 100 80.3: United Kingdom (Rank: 23) 78.2: Germany (Rank: 30) 76.6: Ireland (Rank: 36) 75.6: Regional Average (OECD high income) 74.3: France (Rank: 52) 73.0: Canada (Rank: 64) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Page 10 Doing Business 2020 Ireland Figure – Dealing with Construction Permits in Ireland – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 4.5 160 4 140 Cost (% of warehouse value) 3.5 120 3 Time (days) 100 2.5 80 2 60 1.5 40 1 20 0.5 0 0 1 *2 3 4 *5 6 7 8 9 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 11 Doing Business 2020 Ireland Figure – Dealing with Construction Permits in Ireland and comparator economies – Measure of Quality 16 14.0 14 13.0 13.0 11.6 12 Index score 10 9.5 9.0 8 6 4 2 0 Ireland Canada France Germany United OECD Kingdom high income Details – Dealing with Construction Permits in Ireland – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Publish notice of construction in approved newspaper 1 day EUR 150 Agency : Newspaper According to Article 17(1)(a) of the Planning and Development Regulations 2001-2011, the intention to apply for planning permission must be published in an authorized newspaper for 14 days, including the site notice, information on the owner, as well as a description of what the intended development will be used for. Once the site notice is published, the applicant can apply for planning permission the next day. A copy of this newspaper publication must be submitted with all the documents when requesting the planning permission. The applicant must apply within 14 days for planning permission from the moment the notice is published; otherwise they must re- publish the intention to apply. The cost depends on the size of the advertisement. 2 Obtain an ordinance survey map 0.5 days EUR 77 Agency : Ordinance Survey Ireland One of the required documents for applying for planning permission is the ordinance survey map showing the location of the plot. The ordnance survey map is obtained online at https://www.osi.ie/. 3 Hold a pre-planning meeting with the Planning Department 21 days no charge Agency : Planning Department, Dun Laoghaire Rathdown County Council Pre-planning consultations are mandatory for non-residential developments of more than 1,000 square meters (which includes the case study warehouse) under section 43 of the Planning and Development (Amendment) Act 2018. The meeting should be held within 4 weeks of the date of the receipt by the county council but that time limit may be extended depending on the council’s resources and workload. The applicant would submit: - Site location map; - Description of proposed development; - Details on car parking, if applicable; and - Full set of drawings if the applicant already has them. 4 Request and obtain planning permission 90 days EUR 102,357 Agency : Planning Department - Dun Laoghaire Rathdown County Council It may be necessary to submit an environmental impact study to accompany the planning application where the local planning authority considers that the development is likely to have a significant effect on the environment, based on the characteristics of the development, its location or the characteristics of the environmental impacts from the development. However, for the case study warehouse, it would not require an environmental impact study or assessment. If the local planning authority considers that the development is likely to have a significant effect on a site protected under the Habitats or Birds Directives (or sites proposed for protection under the Habitats or Birds Directives), it may also be necessary to submit an 'appropriate assessment' of the predicted impacts of the proposed development on the relevant protected site(s). However, this would likely not apply to the case study warehouse. The time specified by law (55 days) represents the minimum statutory time period within which the planning authority may, at first instance, make a decision on the planning application: reject the application, approve the application or request further information from the applicant. Within these 8 weeks, the public has 5 weeks to submit any comments they may have on the development. If the planning authority seeks further information, the applicant would have an additional 6 months to respond. The planning authority then has 4 weeks to make a decision following receipt of further information. Once the planning decision is made, the applicant has 4 weeks to appeal. However, in practice it takes around 90 days, on the basis that a request for further information is made by the planning authority. An appeal against the decision made by the local planning authority may be made to the planning appeals board (an board pleanála) within 4 weeks of the date of the decision of the local planning authority. The appeal process, which may include an oral hearing, may delay the commencement of construction between 4-8 months or even more. According to Development Contribution Scheme 2016 - 2020 (as amended) (under Section 48, Planning & Development Act, 2000 as amended), BuildCo is required to pay a general contribution fee in respect of public infrastructure and facilities benefiting development in the area of the local planning authority. Page 12 Doing Business 2020 Ireland 5 Request and obtain fire safety and disability access certificates 90 days EUR 4,272 Agency : Planning Department, Dun Laoghaire Rathdown County Council The fire safety certificate and the disability access certificate can be requested together at the local City Council according to the Building Control Regulation 1997, revised December 2018. Both applications are then forwarded to the relevant departments. Fire safety certificate: It is required before a building may be lawfully occupied. In order to ensure that the design and construction is in accordance with the relevant statutory fire safety requirements, an application for the fire safety certificate should be made prior to construction or, at a minimum, 90 days prior to completion, to prevent any delay in the occupation of the building. The application must be accompanied by a fire safety report, drawings and specifications and the relevant fee. A revised fire safety certificate may be required where planning permission is granted for a revised design or where a significant revision is made to the design for which a fire safety certificate has been granted. It is important that the full application fee accompany the application for a fire safety certificate, as the application may otherwise be deemed invalid and returned by the local authority. Once the application is received, the Fire Safety Unit will review the application for completion and check that the fees have been paid. The application will then be stamped and validated, and an acknowledgment of receipt will be sent to the applicant. The fire safety report and drawings will then be reviewed to ensure they comply with Part B (fire safety) requirements in the legislation. Builders have the option to commence development without waiting until a fire safety certificate is issued, according to the 7-day notice I. 351 of 2009 Building Control (Amendment) Regulations 2009. Once a firm submits a valid application for a fire safety certificate, it may submit a 7-day notice to the Fire Safety Unit and sign a statutory declaration that Part B (fire safety) requirements will be complied with. Once this is carried out and upon expiration of the 7-day period, the developer can commence development without waiting for the fire safety certificate to be issued. However, the 7-day notice can only be submitted where a valid application for a fire safety certificate is made. A fire safety certificate will still have to be issued for the development. Disability access certificate: Since January 2010, all buildings have to obtain a disability access certificate. An architect or other professional prepares the access certificate application to confirm that the design of the building meets the recommendations of Part M of the Building Control Regulations. The application must be accompanied by a site or layout plan; and the following information such as identifying and describing the works or building to which the application relates, in addition the nature and extent of the proposed use; and the relevant fee. If both applications for the disability access and fire safety certificates are submitted together, then a fee of EUR 500 is paid for the disability access certificate instead of EUR 800. The local planning authority reviews the application and proceeds to issue the certificate if it is in order. To avoid potentially expensive remedial work, it would be considered good practice to apply for the certificate at the same time as the fire safety certificate, thereby ensuring that the certificate and any conditions pertaining to it are known prior to the commencement of works. A building may not be operated or occupied unless such a certificate has been granted. The fire safety certificate takes 3 months to obtain, and the disability certificate takes around 2 months. Page 13 Doing Business 2020 Ireland 6 Submit a commencement notice 0.5 days EUR 30 Agency : Planning Department - Dun Laoghaire Rathdown County Council According to the Building Control (Amendment) Regulations 2014, a commencement notice or seven-day notice must be submitted must be submitted through the online system of Building Control Management System (BCMS). This must be submitted seven days prior to construction on-site. In addition, the fire safety certificate must be granted before submitting the commencement notice. Any commencement notice, which come within the scope of S.I. 9 of 2014 must fill out an online assessment of the proposed approach to compliance with the building regulations. It must be signed and submitted in person, and be accompanied by the following documents: - Undertaking by assigned certifier; - Notice of assignment of builder; - Undertaking by builder; - General arrangement drawings for building control purposes – plans, sections and elevations; - A schedule of design documents as are currently prepared or to be prepared; - An online assessment via the Building Control Management System of the proposed approach to compliance with the requirements of the Building Regulations 1997 to 2014; - Certificate of compliance (design) signed by the builder and the assigned certifier undertaking to carry-out their roles in accordance with the requirements of the building regulations; - Notice of assignment in respect of the builder who will carry out the works and of the assigned certifier who will inspect and certify the works; - Final planning permission; - A fire safety certificate; and - A disability access certificate/application form. In addition: - The designer and the assigned certifier must be a chartered engineer, or registered architect or registered surveyor; - A competent builder must execute the work; - The drawings must show details of how the building will comply with the building regulations: drawings submitted for planning permission purposes are not typically building control compliance drawings; - Other documents which may be submitted to demonstrate compliance with building regulations include a specification document for the works, DEAP calculations, Part L compliance document; and - Where notices and documentation are submitted in written format, the building control authority will arrange for their scanning and uploading for which an administrative charge will apply and statutory deadlines relating to such notices may be delayed by up to seven days. It must be accompanied by a fee of EUR 30 per building, up to a maximum of EUR 3,800. 7 Request water and sewage connection 1 day EUR 490 Agency : Irish Water As of January 2014, Irish Water (a new national water utility) has assumed responsibility for the provision of water services, in partnership with each local authority. BuildCo applies to Irish Water (IW) by downloading the online connection application form and submitting it by email or post, along with maps, building plans, the applicant's details, information on water loading and demand and a water conservation plan. 8 Receive inspection for feasibility of the connections and obtain connection offer 7 days no charge Agency : Irish Water Irish Water (IW) will assess the application to confirm that the application is still feasible. The information is then forwarded by IW to the local planning authority for review and they have 7 days to send their comments to IW. Once the local authority indicates that are no issues with the application, IW reviews the application and may request additional information from BuildCo. In addition IW will engage with the developer to vet the design of the local infrastructure if necessary. For example, IW would check the size of the pipe that BuildCo is connecting to. Once everything has been reviewed, IW will issue an offer to connect, detailing costs and the works required to enable the connection at which stage the connection fees must be paid. 9 Obtain water and sewage connection 21 days no charge Agency : Irish Water Once the connection fees are paid, BuildCo can proceed with laying the cables and pipes on the private land. A contractor from Irish Water will then complete the connection works on the public land, including any excavation under public roads, and will install the water meter. Page 14 Doing Business 2020 Ireland 10 Submit the Certificate of Compliance on Completion and obtain approval 21 days no charge Agency : Planning Department, Dun Laoghaire Rathdown County Council A certificate of compliance and completion needs to be submitted to local City Council upon completion, which can be done through the Building Control Management System (BCMS) since 2018. This must include a statutory form, plans, calculations, specifications and particulars that are necessary to outline how the completed building: - differs from the plans, calculations, specifications and particulars submitted for the planning permission; and - complies with building regulations. The Planning Department’s role at the completion stage is primarily an administrative function to validate the paperwork uploaded to the BCMS by the assigned certifier. The validation/review process ensures that the certificate was properly completed and signed by the appropriate person, and that the final inspection plan is completed and matches the original plan uploaded on the BCMS’s system at the commencement stage by the assigned certifier (internal to the company). The Planning Department checks that there are no unresolved matters in relation to requests under Section 11 of the Building Control Act or Enforcement Notices or conditions attached to the fire safety certificate and the disability access certificate. There is no inspection undertaken by the Planning Department as part of the validation/review of the certificate of compliance upon completion. Upon receipt, the building control authority will have 21 days to determine the validity of the certificate of compliance. When the certificate of compliance has been accepted, the authority will register the certificate in the registry and notify the applicant of its acceptance. The Planning Department would not require the owner to register the warehouse in the Land Registry upon completion. Takes place simultaneously with previous procedure. Page 15 Doing Business 2020 Ireland Details – Dealing with Construction Permits in Ireland – Measure of Quality Answer Score Building quality control index (0-15) 13.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0 of charge. Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0 accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0 building regulations? (0-1) Licensed engineer. Quality control during construction index (0-3) 3.0 What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in- 2.0 house engineer; Inspections by external engineer or firm; Risk-based inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0 plans and regulations? (0-2) is done by government agency; Yes, in-house engineer submits report for final inspection. Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use No party is held liable 0.0 (Latent Defect Liability or Decennial Liability)? (0-1) under the law. Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 0.0 problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain insurance . Professional certifications index (0-4) 4.0 What are the qualification requirements for the professional responsible for verifying that the architectural plans Minimum number of 2.0 or drawings are in compliance with existing building regulations? (0-2) years of experience; University degree in architecture or engineering; Being a registered architect or engineer. What are the qualification requirements for the professional who supervises the construction on the ground? (0- Minimum number of 2.0 2) years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Page 16 Doing Business 2020 Ireland Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining all necessary clearances and permits The warehouse: • Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods. inspections - Is located in the economy’s largest business city. For 11 economies the data are also collected for • Obtaining external installation works and possibly purchasing the second largest business city. material for these works - Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway. • Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time. supply - Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet). • Is at least 1 calendar day The electricity connection: • Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- • Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW). - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution • Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the prior contact with officials warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other Cost required to complete each procedure (% of income per owners’ private property because the warehouse has access to a road. capita) - Does not require work to install the internal wiring of the warehouse. This has already been • Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base. • Value added tax excluded The monthly consumption: The reliability of supply and transparency of tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours • Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts • Tools to monitor power outages (0–1) (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier. • Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation purposes only 30 days are used. • Financial deterrents limiting outages (0–1) • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity. Page 17 Doing Business 2020 Ireland Getting Electricity - Ireland Standardized Connection Name of utility Electricity Supply Board (ESB) Price of electricity (US cents per kWh) 19.0 City Covered Dublin Indicator Ireland OECD high income Best Regulatory Performance Procedures (number) 5 4.4 3 (28 Economies) Time (days) 85 74.8 18 (3 Economies) Cost (% of income per capita) 57.1 61.0 0.0 (3 Economies) Reliability of supply and transparency of tariff index (0-8) 8 7.4 8 (26 Economies) Figure – Getting Electricity in Ireland – Score 66.7 70.9 99.3 100.0 Reliability of supply and transparency of Procedures Time Cost tariff index Figure – Getting Electricity in Ireland and comparator economies – Ranking and Score DB 2020 Getting Electricity Score 0 100 98.8: Germany (Rank: 5) 96.9: United Kingdom (Rank: 8) 92.0: France (Rank: 17) 85.9: Regional Average (OECD high income) 84.2: Ireland (Rank: 47) 63.8: Canada (Rank: 124) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Figure – Getting Electricity in Ireland – Procedure, Time and Cost Time (days) Cost (% of income per capita) 70 80 60 Cost (% of income per capita) 70 60 50 Time (days) 50 40 40 30 30 20 20 10 10 0 0 1 2 3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures Page 18 Doing Business 2020 Ireland reflected here, see the summary below. Figure – Getting Electricity in Ireland and comparator economies – Measure of Quality 9 8 8 8 8 8 7.4 7 6 Index score 6 5 4 3 2 1 0 Ireland Canada France Germany United OECD Kingdom high income Page 19 Doing Business 2020 Ireland Details – Getting Electricity in Ireland – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit application to Electricity Supply Board (ESB) Networks 14 calendar days EUR 0 Agency : Electricity Supply Board (ESB) Networks Ltd. The client needs to first obtain an ordnance survey map (scale 1:2500-1:10560) that shows the location of their new premises, and a detailed site plan (scale 1:100-1:500) showing the new premises. Photocopies are acceptable. The customer completes the Electricity Supply Board (ESBN) Networks application form (NC3) available on utility's website and submits it with load details and an ordnance survey map to the central office for application management at ESB Networks Service Bureau located in Cork city. 2 Receive external inspection by ESB Networks and await estimate 4 calendar days EUR 0 Agency : Electricity Supply Board (ESB) Networks Ltd. After the completed application has been received, the client’s business and site details will be set up on ESB Network’s system, then inspection takes place. The client then receives an acknowledgement with a reference number along with a quotation and a connection agreement. This agreement includes: • The meter point reference number (MPRN) for the client’s new premises. This is a unique reference number that identifies the client’s connection point to the electricity network; and • The maximum import capacity (MIC) of the new premises. The MIC equates to the contracted electricity capacity for the premises based on information provided to ESB Networks. 3 Sign connection agreement and await completion of external works by ESB Networks 60 calendar days EUR 29,698 Agency : Electricity Supply Board (ESB) Networks Ltd. The customer signs the connection agreement and returns it with the payment to ESB Networks Services Bureau. Check, postal order, and bank drafts, but no cash, are acceptable. Once these have been received, ESB Networks will apply for a Road Opening License at the Roadworks Control Unit at the Dublin City Council. For excavation distances of less than 100 meters the license can be obtained in few days. For more than 100 meters however, the process will take longer because ESB Networks will then need to go through a road risk control. More information on this can be found at http://www.dublincity.ie/main-menu-services-roads-and-traffic- permits-and-licences/road-opening-licence. The Electricity Supply Board (ESB) Networks can start construction work on the electricity infrastructure required for the premises. The costumer will need to provide a civil plinth for mounting of the electrical transformer and any ducting required on-site. Once the external work is completed by ESB Networks, the meter is also installed. 4 Submit customer's electrician's completion certificate 1 calendar day EUR 86.78 Agency : Safe Electric While the customer is awaiting their connection agreement, the applicant’s registered electrical contractor (REC) must submit a Safe Electric completion certificate for the electrical installation per statutory requirements quoting the client’s meter point reference number (MPRN); address; and the clients name or business name. The certificate (No.2 over 50 kVA) is obtained from Safe Electric. If all information is in compliance with the Electricity Regulation Act 1999, then Safe Electric notifies ESB Networks and electricity supply can be turned on. In fact, every time an electrical contractor completes a new electrical installation, extension, or modification to an existing installation, s/he is obliged to test and certify that the installation complies with current standards. These standards are set by National Standards Authority of Ireland (NSAI). The electrical contractor is normally member of the Register of Electrical Contractors of Ireland (RECI), which is the organization designated by the Commission for Regulation of Utilities (CRU) from 2016-2022 to act as Safety Supervisory Body (SSB) and carry out the safety functions specified in legislation. Among the situations where completion certificate is required are: • Building any new house or premises; • Building an extension to an existing house or premises; • Altering the internal electrical wiring in any existing house or premises; • Reconnecting a house or premises (if vacant for more than 6 months); and • Connecting electric fences and other installations. Page 20 Doing Business 2020 Ireland 5 Sign supply contract with an electricity supplier and obtain meter installation and final 7 calendar days EUR 0 connection from ESB Networks Agency : Supply company and Electricity Supply Board (ESB) Networks Ltd. If the customer’s maximum import capacity (MIC) is less than 30 kVA, they can contact the supplier of their choice or they may contact ESB Networks to request that their connection be made live. If the customer’s maximum import capacity is greater than or equal to 30kVA, the client must register with an electricity supplier of their choice. A list of suppliers is available at https://www.cru.ie/. The client will need the following information when contacting a supplier: • Meter Point Reference Number; • The address of the new premises; and • Name and contact details. Once the supply contract has been signed, the supplier will pass on the information to ESB Networks, which will then proceed to finalize the connection without further involvement with the customer. Takes place simultaneously with previous procedure. Page 21 Doing Business 2020 Ireland Details – Getting Electricity in Ireland – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.8 System average interruption frequency index (SAIFI) 0.6 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? Yes Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online https://switcher.ie/gas- electricity/comparison/ Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 22 Doing Business 2020 Ireland Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the (number) transaction, the property and the procedures are used. • Preregistration procedures (for example, checking for liens, The parties (buyer and seller): notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). • Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits) • Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the municipality) second largest business city. - Are 100% domestically and privately owned. Time required to complete each procedure (calendar days) - Perform general commercial activities. • Does not include time spent gathering information The property (fully owned by the seller): • Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price. that can be fully completed online are an exception to this rule - Is fully owned by the seller. • Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years. received - Is registered in the land registry or cadastre, or both, and is free of title disputes. • No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required. Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, • Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be taxes). transferred in its entirety. • Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase. excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind. - Will not be used for special purposes, and no special permits, such as for residential use, Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required. • Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it. • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 23 Doing Business 2020 Ireland Registering Property - Ireland Indicator Ireland OECD high income Best Regulatory Performance Procedures (number) 5 4.7 1 (5 Economies) Time (days) 31.5 23.6 1 (2 Economies) Cost (% of property value) 6.5 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 23.5 23.2 None in 2018/19 Figure – Registering Property in Ireland – Score 66.7 85.4 56.5 78.3 Procedures Time Cost Quality of the land administration index Figure – Registering Property in Ireland and comparator economies – Ranking and Score DB 2020 Registering Property Score 0 100 77.8: Canada (Rank: 36) 77.0: Regional Average (OECD high income) 75.7: United Kingdom (Rank: 41) 71.7: Ireland (Rank: 60) 66.6: Germany (Rank: 76) 63.3: France (Rank: 99) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Page 24 Doing Business 2020 Ireland Figure – Registering Property in Ireland – Procedure, Time and Cost Time (days) Cost (% of property value) 7 30 6 Cost (% of property value) 25 5 20 Time (days) 4 15 3 10 2 5 1 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 25 Doing Business 2020 Ireland Figure – Registering Property in Ireland and comparator economies – Measure of Quality 27 26.0 26 25 Index score 24.0 24 23.5 23.2 23.0 23 22 21.5 21 20 19 Ireland Canada France Germany United OECD Kingdom high income Details – Registering Property in Ireland – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Conveyancing and standard requisitions on title ordered by the Incorporated Law Society 20 days paid in Procedure 3 of Ireland Agency : Lawyer's office The Incorporated Law Society of Ireland has a comprehensive set of conveyancing documents which are standard requisitions on title, investigating various matters including the following: services, easements and rights, obligations, outgoings, bankruptcy, taxation, building control and environmental regulations, fire services and health and safety, etc. In the case of a commercial property transaction a solicitor might consider it prudent to have the physical boundaries of the property on sale surveyed by an architect to ensure that it correlates with the boundaries of the property as shown on the Land Registry Map. To get an architect to certify the identity of the property will take 5 additional days and cost about € 500. The cost is subject to 23 % VAT. In addition, an architect often performs a planning search – a review of planning documentation pertaining to the transacted property - to identify any limitations on the property uses. The planning documents from year 2000 or later are provided by the Planning Department of the Dublin City Council instantly online at no cost. Older files can be accessed on the City Council premises on request and at no cost (only standard photocopying charges may apply). It usually takes 2 days for the Dublin City Council to prepare requested historical documentation for review. 2 Obtain official certified copies of the property's folio and title map 3 days EUR 40; (For all searches) Agency : Property Registration Authority of Ireland Applications for a certified copy of the Folio and Title Plan can be made online on the website Landdirect.ie. Paper copies are delivered to the applicant within 3 days of request. 3 Lawyer drafts contract and contracts are exchanged 1 day EUR 13,035.36; (between Agency : Lawyer's office 0.25% and 0.75% of The vendor's lawyer would draft the sale-purchase agreement, whilst the purchaser's lawyer property value) would draft the deed which effects the title transfer. 4 Submission of documents to Revenue Commissioners Less than one day, EUR 156,424.32; (6% of Agency : Revenue Commissioners online the value of the property This procedure involves submission of documents to Revenue Commissioners for payment of for non-residential stamp duty & impression of “Particular Delivered” stamp. Since January 1, 2010, the stamping of properties.) deeds is done online. The stamp duty is submitted electronically to the Revenue Commissioners, which in turn sends a certificate of confirmation of stamping via email to the purchaser's solicitor. The title deed must be stamped within 28 days of the date of execution of the deed or penalties will be incurred. 5 Lodgment of application for registration at the Land Registry 10 days EUR 800 Agency : Land Registry Once the title deed to the purchaser has been stamped, it can be registered at the Land Registry using the application Form 17. A facility to make an application for registration electronically via the PRA's electronic access system is available while the supporting documents are sent by post ( mailing usually takes 2 days) Supporting documentation will include the deed of transfer and payment of the appropriate fees. It is normally the case that the buyer's solicitor will prepare the deed of transfer and will send the draft deed to the seller's solicitor for approval. In certain cases, the vendor's solicitor will draft the deed (e.g. lease of building estate grant). When the deed of transfer is finally agreed between the parties, it will be signed by the parties to the transfer. On completion of the application the Property Registration Authority will advise the lodging party of the completion. Takes place simultaneously with previous procedure. Page 26 Doing Business 2020 Ireland Details – Registering Property in Ireland – Measure of Quality Answer Score Quality of the land administration index (0-30) 23.5 Reliability of infrastructure index (0-8) 8.0 Type of land registration system in the economy: Dual system (Title & Deed) What is the institution in charge of immovable property registration? Property Registration Authority In what format are past and newly issued land records kept at the immovable property registry of the largest Computer/Fully digital 2.0 business city of the economy —in a paper format or in a computerized format (scanned or fully digital)? Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Property Registration Authority In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Computer/Fully digital 2.0 city of the economy—in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing cadastral information Yes 1.0 (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Single database 1.0 kept in a single database, in different but linked databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use the same identification Yes 1.0 number for properties? Transparency of information index (0–6) 4.5 Who is able to obtain information on land ownership at the agency in charge of immovable property registration Freely accessible by 1.0 in the largest business city? anyone Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, online 0.5 and if so, how? Link for online access: Landdirect.ie Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property Yes, online 0.5 registration in the largest business city made publicly available–and if so, how? Link for online access: Landdirect.ie Does the agency in charge of immovable property registration agency formally commit to deliver a legally Yes, online 0.5 binding document that proves property ownership within a specific timeframe –and if so, how does it communicate the service standard? Link for online access: Landdirect.ie Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0 in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the immovable property Yes 0.5 registration agency? Number of property transfers in the largest business city in 2018: 19189.0 Who is able to consult maps of land plots in the largest business city? Freely accessible by 0.5 anyone Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5 Link for online access: Landdirect.ie Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and Yes, online 0.5 if so, how does it communicate the service standard? Link for online access: Landdirect.ie Page 27 Doing Business 2020 Ireland Is there a specific and independent mechanism for filing complaints about a problem that occurred at the No 0.0 cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 4.0 Are all privately held land plots in the largest business city formally registered at the immovable property Yes 2.0 registry? Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Are all privately held land plots in the economy mapped? No 0.0 Land dispute resolution index (0–8) 7.0 Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5 them opposable to third parties? Legal basis: Section 51(2) of the Registration of Title Act 1964 Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5 Type of guarantee: State guarantee Page 28 Doing Business 2020 Ireland Legal basis: Section 31 of the Registration of Title Act, 1964 31. (1) The register shall be conclusive evidence of the title of the owner to the land as appearing on the register and of any right, privilege, appurtenance or burden as appearing thereon; and such title shall not, in the absence of actual fraud, be in any way affected in consequence of such owner having notice of any deed, document, or matter relating to the land; but nothing in this Act shall interfere with the jurisdiction of any court of competent jurisdiction based on the ground of actual fraud or mistake, and the court may upon such ground make an order directing the register to be rectified in such manner and on such terms as it thinks just. (2) The validity of registration of ownership of unregistered land shall not be affected by reason that the person thereby shown to be registered as owner was then dead and any person who proves to the satisfaction of the Registrar that he is entitled to the land may be registered as owner thereof Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Legal basis: Section 120 of the Registaration of Ttile Act, 1964 as amended by Section 69 of the Registration of Deeds and Titles Act, 2006 Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5 checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Lawyer; Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5 If yes, who is responsible for verifying the identity of the parties? Registrar; Lawyer; Is there a national database to verify the accuracy of government issued identity documents? Yes 1.0 What is the Court of first instance in charge of a case involving a standard land dispute between two local High Court businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located in the largest business city? Page 29 Doing Business 2020 Ireland How long does it take on average to obtain a decision from the first-instance court for such a case (without Between 1 and 2 2.0 appeal)? years Are there publicly available statistics on the number of land disputes at the economy level in the first instance Yes 0.5 court? Number of land disputes in the economy in 2018: 217.0 Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes Do married men and married women have equal ownership rights to property? Yes 0.0 Page 30 Doing Business 2020 Ireland Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit • Rights of borrowers and lenders through collateral laws (0-10) information index measures rules and practices affecting the coverage, scope and accessibility of • Protection of secured creditors’ rights through bankruptcy laws credit information available through a credit registry or a credit bureau. The strength of legal rights (0-2) index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary Depth of credit information index (0–8) secured transactions system exists. Then two case scenarios, case A and case B, are used to • Scope and accessibility of credit information distributed by determine how a nonpossessory security interest is created, publicized and enforced according to credit bureaus and credit registries (0-8) the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a Credit bureau coverage (% of adults) secured lender, BizBank. • Number of individuals and firms listed in largest credit bureau In some economies the legal framework for secured transactions will allow only case A or case B as a percentage of adult population (not both) to apply. Both cases examine the same set of legal provisions relating to the use of Credit registry coverage (% of adults) movable collateral. • Number of individuals and firms listed in credit registry as a Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: percentage of adult population - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 31 Doing Business 2020 Ireland Getting Credit - Ireland Indicator Ireland OECD high income Best Regulatory Performance Strength of legal rights index (0-12) 7 6.1 12 (5 Economies) Depth of credit information index (0-8) 7 6.8 8 (53 Economies) Credit registry coverage (% of adults) 94.4 24.4 100.0 (2 Economies) Credit bureau coverage (% of adults) 100.0 66.7 100.0 (14 Economies) Figure – Getting Credit in Ireland – Score 70.0 Score - Getting Credit Figure – Getting Credit in Ireland and comparator economies – Ranking and Score DB 2020 Getting Credit Score 0 100 85.0: Canada (Rank: 15) 75.0: United Kingdom (Rank: 37) 70.0: Germany (Rank: 48) 70.0: Ireland (Rank: 48) 64.3: Regional Average (OECD high income) 50.0: France (Rank: 104) Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index. Page 32 Doing Business 2020 Ireland Figure – Legal Rights in Ireland and comparator economies 10 9 9 8 7 7 Index Score 7 6 6.1 6 5 4 4 3 2 1 0 Ireland Canada France Germany United OECD Kingdom high income Page 33 Doing Business 2020 Ireland Details – Legal Rights in Ireland Strength of legal rights index (0-12) 7 Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents No to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description Yes of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of Yes collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the Yes original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an No electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third No party? Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? Yes Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law No protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell Yes the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Ireland and comparator economies 9 8 8 8 8 7 6.8 7 6 Index Score 6 5 4 3 2 1 0 Ireland Canada France Germany United OECD Kingdom high income Page 34 Doing Business 2020 Ireland Details – Credit Information in Ireland Depth of credit information index (0-8) Credit bureau Credit registry Score Are data on both firms and individuals distributed? Yes Yes 1 Are both positive and negative credit data distributed? Yes Yes 1 Are data from retailers or utility companies - in addition to data from banks and No No 0 financial institutions - distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries Yes No 1 that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1 By law, do borrowers have the right to access their data in the credit bureau or Yes Yes 1 credit registry? Can banks and financial institutions access borrowers’ credit information online Yes Yes 1 (for example, through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help Yes No 1 banks and financial institutions assess the creditworthiness of borrowers? Total Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 5,508,281 2,800,000 Number of firms 538,513 140,000 Total 6,046,794 2,940,000 Percentage of adult population 100.0 94.4 Page 35 Doing Business 2020 Ireland Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions • Extent of disclosure index (0–10): Disclosure, review, and To make the data comparable across economies, a case study uses several assumptions about approval requirements for related-party transactions the business and the transaction. • Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for The business (Buyer): prejudicial related-party transactions; Available legal - Is a publicly traded corporation listed on the economy’s most important stock exchange. remedies (damages, disgorgement of profits, disqualification - Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of from managerial position(s) for one year or more, rescission of Buyer where permitted, even if this is not specifically required by law. the transaction) - Has a supervisory board in economies with a two-tier board system on which Mr. James • Ease of shareholder suits index (0–10): Access to internal appointed 60% of the shareholder-elected members. corporate documents; Evidence obtainable during trial and - Has not adopted bylaws or articles of association that go beyond the minimum requirements. allocation of legal expenses Does not follow codes, principles, recommendations or guidelines that are not mandatory. - Is a manufacturing company with its own distribution network. • Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of The transaction involves the following details: shareholder suits indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to • Extent of shareholder rights index (0-6): Shareholders’ rights Buyer’s five-member board. and role in major corporate decisions - Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores. • Extent of ownership and control index (0-7): Governance - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s safeguards protecting shareholders from undue board control distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of and entrenchment Buyer’s assets and is higher than the market value. • Extent of corporate transparency index (0-7): Corporate - The proposed transaction is part of the company’s principal activity and is not outside the transparency on ownership stakes, compensation, audits and authority of the company. financial prospects - Buyer enters into the transaction. All required approvals are obtained, and all required disclosures • Extent of shareholder governance index (0–20): Sum of the made—that is, the transaction was not entered into fraudulently. extent of shareholders rights, extent of ownership and control - The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and and extent of corporate transparency indices directors that approved the transaction. • Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices Page 36 Doing Business 2020 Ireland Protecting Minority Investors - Ireland Stock exchange information Stock exchange Irish Stock Exchange Stock exchange URL http://www.ise.ie Listed firms with equity securities 55 City Covered Dublin Indicator Ireland OECD high income Best Regulatory Performance Extent of disclosure index (0-10) 9.0 6.5 10 (13 Economies) Extent of director liability index (0-10) 8.0 5.3 10 (3 Economies) Ease of shareholder suits index (0-10) 9.0 7.3 10 (Djibouti) Extent of shareholder rights index (0-6) 5.0 4.7 6 (19 Economies) Extent of ownership and control index (0-7) 3.0 4.5 7 (9 Economies) Extent of corporate transparency index (0-7) 6.0 5.7 7 (13 Economies) Figure – Protecting Minority in Ireland – Score 80.0 Score - Protecting Minority Investors Figure – Protecting Minority Investors in Ireland and comparator economies – Ranking and Score DB 2020 Protecting Minority Investors Score 0 100 84.0: Canada (Rank: 7) 84.0: United Kingdom (Rank: 7) 80.0: Ireland (Rank: 13) 68.2: Regional Average (OECD high income) 68.0: France (Rank: 45) 62.0: Germany (Rank: 61) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index. Page 37 Doing Business 2020 Ireland Figure – Protecting Minority Investors in Ireland and comparator economies – Measure of Quality Ireland 6 8 9 3 5 9 Canada 6 9 8 6 4 9 France 7 3 8 6 4 6 Germany 6 5 5 5 5 5 United Kingdom 6 7 10 5 6 8 OECD high income 5.6 5.6 6.6 4.3 4.5 7.4 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7) Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10) Page 38 Doing Business 2020 Ireland Details – Protecting Minority Investors in Ireland – Measure of Quality Answer Score Extent of conflict of interest regulation index (0-30) Extent of disclosure index (0-10) 9.0 Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of all 2.0 material facts Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 2.0 transaction and on the conflict of interest Must Buyer immediately disclose the transaction to the public? (0-2) Disclosure on the 2.0 transaction and on the conflict of interest Extent of director liability index (0-10) 8.0 Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0 Buyer? (0-1) Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Liable if unfair or 2.0 prejudicial Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Liable if negligent 1.0 Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) Yes 1.0 Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) Yes 1.0 Is Mr. James disqualified upon a successful claim by shareholders? (0-1) Yes 1.0 Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if negligently 1.0 concluded Ease of shareholder suits index (0-10) 9.0 Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? Yes 1.0 (0-1) Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) Yes 1.0 Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-20) Extent of shareholder rights index (0-6) 5.0 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? Yes 1.0 Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new shares? Yes 1.0 Do shareholders elect and dismiss the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? Yes 1.0 Extent of ownership and control index (0-7) 3.0 Page 39 Doing Business 2020 Ireland Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? No 0.0 Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0 Must the board of directors include a separate audit committee exclusively comprising board members? No 0.0 Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? Yes 1.0 Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Extent of corporate transparency index (0-7) 6.0 Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and directorships in other Yes 1.0 companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? Yes 1.0 Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Page 40 Doing Business 2020 Ireland Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in 2018 (number Using a case scenario, Doing Business records taxes and mandatory contributions a medium size per year adjusted for electronic and joint filing and payment) company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of • Total number of taxes and contributions paid or withheld, filing and payments, time taken to comply with tax laws, time taken to comply with the including consumption taxes (value added tax, sales tax or requirements of postfiling processes and time waiting. goods and service tax) • Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: - TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces Time required to comply with 3 major taxes (hours per year) ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the • Collecting information, computing tax payable second year of operation (calendar year 2018). Taxes and mandatory contributions are measured at all levels of government. • Preparing separate tax accounting books, if required • Completing tax return, filing with agencies The VAT refund process: - In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times • Arranging payment or withholding income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income Total tax and contribution rate (% of commercial profits) per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred • Profit or corporate income tax in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, • Social contributions, labor taxes paid by employer sales and the machine and the tax reporting period is every month. Input VAT will exceed Output VAT in June 2018. • Property and property transfer taxes The corporate income tax audit process: • Dividend, capital gains, financial transactions taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, • Waste collection, vehicle, road and other taxes or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the Postfiling Index tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax • Time to comply with VAT refund (hours) liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. • Time to obtain VAT refund (weeks) • Time to comply with a corporate income tax correction (hours) • Time to complete a corporate income tax correction (weeks) Page 41 Doing Business 2020 Ireland Paying Taxes - Ireland Indicator Ireland OECD high income Best Regulatory Performance Payments (number per year) 9 10.3 3 (2 Economies) Time (hours per year) 82 158.8 49 (3 Economies) Total tax and contribution rate (% of profit) 26.1 39.9 26.1 (33 Economies) Postfiling index (0-100) 93.4 86.7 None in 2018/19 Figure – Paying Taxes in Ireland – Score 90.0 95.0 99.9 93.4 Payments Time Total tax and contribution rate Postfiling index Figure – Paying Taxes in Ireland and comparator economies – Ranking and Score DB 2020 Paying Taxes Score 0 100 94.6: Ireland (Rank: 4) 88.1: Canada (Rank: 19) 86.2: United Kingdom (Rank: 27) 84.3: Regional Average (OECD high income) 82.2: Germany (Rank: 46) 79.2: France (Rank: 61) Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold. Page 42 Doing Business 2020 Ireland Figure – Paying Taxes in Ireland and comparator economies – Measure of Quality 120 93.4 97.7 100 92.4 86.7 Index score 80 73.2 71.0 60 40 20 0 Ireland Canada France Germany United OECD Kingdom high income Page 43 Doing Business 2020 Ireland Details – Paying Taxes in Ireland Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR mandatory (number) Payments rate contribution contribution rate (% of profit) Employer paid - 1.0 online 40.5 10.85% gross salaries 12.36 Social security contributions Corporate 1.0 online 12.0 12.5% taxable profits 10.70 income tax Capital gains 0.0 online and jointly 33% gain 1.67 Property tax 1.0 Rateable Annual rate* 1.07 valuation valuation Motor Renewal 1.0 various rate vehicle weight 0.21 tax (road tax) Environmental 1.0 €75 per tonne tonne of waste 0.10 Duties Stamp duty 1.0 3% insurance 0.03 (insurance premium contracts) Tax on check 1.0 50c per check number of 0.01 transactions checks Fuel tax 1.0 EUR 479.02 per 1000 liter 0.00 small amount Employee paid - 0.0 online and jointly 4% gross salaries 0.00 withheld Social security contributions Universal Social 0.0 jointly 0.5%, 2%, 4.75% gross salaries 0.00 withheld Charge on & 8% Employees Value added tax 1.0 online 29.0 23% value added 0.00 not included (VAT) Totals 9 82 26.1 Page 44 Doing Business 2020 Ireland Details – Paying Taxes in Ireland – Tax by Type Taxes by type Answer Profit tax (% of profit) 12.4 Labor tax and contributions (% of profit) 12.4 Other taxes (% of profit) 1.4 Page 45 Doing Business 2020 Ireland Details – Paying Taxes in Ireland – Measure of Quality Answer Score Postfiling index (0-100) 93.4 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process none Percentage of cases exposed to a VAT audit (%) 25% - 49% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 0.0 100 Time to obtain VAT refund (weeks) 16.0 74.6 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax correction (hours) 2.0 99.1 Time to complete a corporate income tax correction (weeks) No tax audit per case 100 study scenario Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction. N/A = Not applicable. Page 46 Doing Business 2020 Ireland Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: • Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as origin economy 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, • Obtaining, preparing and submitting documents required by suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and destination economy and any transit economies can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours. • Covers all documents required by law and in practice, including electronic submissions of information Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the Border compliance costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. • Customs clearance and inspections Contributors are private sector experts in international trade logistics and are informed about • Inspections by other agencies (if applied to more than 20% of exchange rates. shipments) Assumptions of the case study: • Handling and inspections that take place at the economy’s port - For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in or border the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy. Domestic transport - It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from • Loading or unloading of the shipment at the warehouse or its natural import partner—the economy from which it imports the largest value (price times port/border quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is • Transport between warehouse and port/border the largest purchaser of this product. Shipment value is assumed to be $50,000. • Traffic delays and road police checks while shipment is en - The mode of transport is the one most widely used for the chosen export or import product and route the trading partner, as is the seaport or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 47 Doing Business 2020 Ireland Trading across Borders - Ireland Indicator Ireland OECD high income Best Regulatory Performance Time to export: Border compliance (hours) 24 12.7 1 (19 Economies) Cost to export: Border compliance (USD) 305 136.8 0 (19 Economies) Time to export: Documentary compliance (hours) 1 2.3 1 (26 Economies) Cost to export: Documentary compliance (USD) 75 33.4 0 (20 Economies) Time to import: Border compliance (hours) 24 8.5 1 (25 Economies) Cost to import: Border compliance (USD) 253 98.1 0 (28 Economies) Time to import: Documentary compliance (hours) 1 3.4 1 (30 Economies) Cost to import: Documentary compliance (USD) 75 23.5 0 (30 Economies) Figure – Trading across Borders in Ireland – Score 85.5 71.2 100.0 81.3 91.8 78.9 100.0 89.3 Time Cost Time Cost Time Cost Time Cost to to to to to to to to export: export: export: export: import: import: import: import: Border Border Documentary Documentary Border Border Documentary Documentary compliance compliance compliance compliance compliance compliance compliance compliance Figure – Trading across Borders in Ireland and comparator economies – Ranking and Score DB 2020 Trading Across Borders Score 0 100 94.3: Regional Average (OECD high income) 93.8: United Kingdom (Rank: 33) 91.8: Germany (Rank: 42) 88.4: Canada (Rank: 51) 87.2: Ireland (Rank: 52) 100: France (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import. Page 48 Doing Business 2020 Ireland Figure – Trading across Borders in Ireland – Time and Cost Time (hours) Cost (USD) 30 350 305 25 24 24 300 253 Time (hours) 250 Cost (USD) 20 200 15 150 10 75 75 100 5 50 1 1 0 0 Export Export Import Import - - - - Border Documentary Border Documentary Compliance Compliance Compliance Compliance Page 49 Doing Business 2020 Ireland Details – Trading across Borders in Ireland Characteristics Export Import Product HS 29 : Organic chemicals HS 8708: Parts and accessories of motor vehicles Trade partner United States United Kingdom Border Dublin port Dublin port Distance (km) 23 23 Domestic transport time (hours) 2 2 Domestic transport cost (USD) 360 459 Details – Trading across Borders in Ireland – Components of Border Compliance Time to Complete (hours) Associated Costs (USD) Export: Clearance and inspections required by 1.8 85.0 customs authorities Export: Clearance and inspections required by 0.0 0.0 agencies other than customs Export: Port or border handling 24.0 220.0 Import: Clearance and inspections required by 0.5 0.0 customs authorities Import: Clearance and inspections required by 0.0 0.0 agencies other than customs Import: Port or border handling 24.0 253.0 Page 50 Doing Business 2020 Ireland Details – Trading across Borders in Ireland – Trade Documents Export Import Bill of lading Bill of lading Customs Export Declaration Commercial invoice Commercial Invoice Packing list SOLAS certificate Intrastat SOLAS certificate Page 51 Doing Business 2020 Ireland Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the courts The dispute in the case study involves the breach of a sales contract between two domestic (calendar days) businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. • Time to file and serve the case • Time for trial and to obtain the judgment To make the data on the time and comparable across economies, several assumptions about the case are used: • Time to enforce the judgment - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both Cost required to enforce a contract through the courts (% of located in the economy’s largest business city. For 11 economies the data are also collected for the claim value) second largest business city. - The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of • Average attorney fees adequate quality. • Court costs - The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater. • Enforcement costs - The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater. Quality of judicial processes index (0-18) - The Seller requests the pretrial attachment of the defendant’s movable assets to secure the • Court structure and proceedings (-1-5) claim. - The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods • Case management (0-6) was not adequate. • Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. • Alternative dispute resolution (0-3) - The Seller enforces the judgment through a public sale of the Buyer’s movable assets. Page 52 Doing Business 2020 Ireland Enforcing Contracts - Ireland Standardized Case Claim value EUR 100,689 Court name Dublin High Court City Covered Dublin Indicator Ireland OECD high income Best Regulatory Performance Time (days) 650 589.6 120 (Singapore) Cost (% of claim value) 26.9 21.5 0.1 (Bhutan) Quality of judicial processes index (0-18) 8.5 11.7 None in 2018/19 Figure – Enforcing Contracts in Ireland – Score 56.6 69.9 47.2 Time Cost Quality of judicial processes index Figure – Enforcing Contracts in Ireland and comparator economies – Ranking and Score DB 2020 Enforcing Contracts Score 0 100 74.1: Germany (Rank: 13) 73.5: France (Rank: 16) 68.7: United Kingdom (Rank: 34) 67.8: Regional Average (OECD high income) 57.9: Ireland (Rank: 91) 57.1: Canada (Rank: 100) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators. Page 53 Doing Business 2020 Ireland Figure – Enforcing Contracts in Ireland – Time and Cost Time (days) Cost (% of claim value) 1000 910 45.7 50 Cost (% of claim value) 800 40 650 Time (days) 589.6 600 26.9 30 499 22.3 447 21.5 437 400 17.4 20 14.4 200 10 0 0 Canada France Germany Ireland OECD United high Kingdom income Page 54 Doing Business 2020 Ireland Figure – Enforcing Contracts in Ireland and comparator economies – Measure of Quality Ireland 2.5 1 0.5 4.5 Canada 2 2 3 4 France 2.5 3 2 4.5 Germany 3 1.5 3.5 4.5 United Kingdom 2 5 3.5 4.5 OECD high income 2.5 3.2 2.4 3.6 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5) Details – Enforcing Contracts in Ireland Indicator Time (days) 650 Filing and service 60 Trial and judgment 500 Enforcement of judgment 90 Cost (% of claim value) 26.9 Attorney fees 18.8 Court fees 2.3 Enforcement fees 5.8 Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 1.0 Court automation (0-4) 0.5 Alternative dispute resolution (0-3) 2.5 Page 55 Doing Business 2020 Ireland Details – Enforcing Contracts in Ireland – Measure of Quality Answer Score Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be granted? No 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) Yes 1.0 clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the competent court? No 0.0 5. Are there any electronic case management tools in place within the competent court for use by judges? No 0.0 6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0 Court automation (0-4) 0.5 1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0 2. Is it possible to carry out service of process electronically for claims filed before the competent court? No 0.0 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.5 4.a Are judgments rendered in commercial cases at all levels made available to the general public No through publication in official gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made Yes available to the general public through publication in official gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes Page 56 Doing Business 2020 Ireland 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or Yes section of the applicable code of civil procedure encompassing substantially all their aspects (for example, definition, aim and scope of application, desig 2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No conciliation is successful, a refund of court filing fees, income tax credits or the like)? Page 57 Doing Business 2020 Ireland Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used: • Measured in calendar years • Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties. Cost required to recover debt (% of debtor’s estate) - The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater. • Measured as percentage of estate value - The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. • Court fees The hotel cannot pay back the loan, but makes enough money to operate otherwise. • Fees of insolvency administrators In addition, Doing Business evaluates the quality of legal framework applicable to judicial • Lawyers’ fees liquidation and reorganization proceedings and the extent to which best insolvency practices have • Assessors’ and auctioneers’ fees been implemented in each economy covered. • Other related fees Outcome • Whether business continues operating as a going concern or business assets are sold piecemeal Recovery rate for creditors • Measures the cents on the dollar recovered by secured creditors • Outcome for the business (survival or not) determines the maximum value that can be recovered • Official costs of the insolvency proceedings are deducted • Depreciation of furniture is taken into account • Present value of debt recovered Strength of insolvency framework index (0- 16) • Sum of the scores of four component indices: • Commencement of proceedings index (0-3) • Management of debtor’s assets index (0-6) • Reorganization proceedings index (0-3) • Creditor participation index (0-4) Page 58 Doing Business 2020 Ireland Resolving Insolvency - Ireland Indicator Ireland OECD high income Best Regulatory Performance Recovery rate (cents on the dollar) 86.1 70.2 92.9 (Norway) Time (years) 0.4 1.7 0.4 (Ireland) Cost (% of estate) 9.0 9.3 1.0 (Norway) Outcome (0 as piecemeal sale and 1 as going concern) 1 .. .. Strength of insolvency framework index (0-16) 10.5 11.9 None in 2018/19 Figure – Resolving Insolvency in Ireland – Score 92.7 65.6 Recovery rate Strength of insolvency framework index Figure – Resolving Insolvency in Ireland and comparator economies – Ranking and Score DB 2020 Resolving Insolvency Score 0 100 89.8: Germany (Rank: 4) 81.0: Canada (Rank: 13) 80.3: United Kingdom (Rank: 14) 79.2: Ireland (Rank: 19) 74.9: Regional Average (OECD high income) 74.6: France (Rank: 26) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index. Page 59 Doing Business 2020 Ireland Figure – Resolving Insolvency in Ireland – Time and Cost Time (years) Cost (% of estate) 2 1.9 9.3 10 9.0 9.0 1.7 8.0 Cost (% of estate) 8 1.5 7.0 Time (years) 1.2 6.0 6 1.0 1 0.8 4 0.5 0.4 2 0 0 Canada France Germany Ireland OECD United high Kingdom income Page 60 Doing Business 2020 Ireland Figure – Resolving Insolvency in Ireland and comparator economies – Measure of Quality Ireland 5 3 1 1.5 Canada 4.5 2.5 3 1 France 6 3 1 1 Germany 6 3 3 3 United Kingdom 5 3 2 1 OECD high income 5.3 2.8 2.1 1.9 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3) Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Figure – Resolving Insolvency in Ireland and comparator economies – Recovery Rate Recovery rate(cents on the dollar) 90 86.1 86.7 85.4 85 79.8 80 74.8 75 70.2 70 65 60 Ireland Canada France Germany United Kingdom OECD high income Page 61 Doing Business 2020 Ireland Details – Resolving Insolvency in Ireland Indicator Answer Score Proceeding reorganization Mirage management will file a petition for judicial protection and appointment of the examiner. The examiner will then propose a scheme of arrangement in order to preserve the company as a going concern. This scheme has to be adopted by at least one class of creditors. If BizBank votes against the scheme of arrangement, it can still be adopted, if other creditors vote in support and BizBank is not prejudiced by the arrangement. Outcome going concern If the scheme of arrangement is accepted, the hotel will continue operating, however, there may be a new owner. Time (in years) 0.4 Mirage's management would file a petition for appointment of an examiner, supported by proof that the company is unable to pay its debts but has a reasonable prospect of survival as a going concern. This position must also be confirmed in a report prepared by an independent accountant, which must be filed together with the petition. From the time of the filing of the petition, the company is under protection of the court and all enforcement actions will be stayed. The court will hear the petition ex parte and appoint a temporary examiner. The court will then schedule a full hearing 7-10 days ahead, which must be advertised to the creditors, so that they can attend. If the court decides to accept the petition, it will also appoint a permanent examiner. The protection period lasts 70 days, but can be extended to 100 days, during which time the examiner must propose a scheme of arrangement, which will be circulated to all creditors. At least one class of creditors must accept the arrangement in order for it to be submitted to the court. The court will hold a confirmation hearing (usually within 2 weeks of when the scheme of arrangement is submitted). If the court approves the scheme of arrangement, it becomes binding on all creditors, even those who did not support it. A scheme of arrangement frequently involves a new investor acquiring all or substantially all of the shareholding in the company together with a write down of the company’s debt across a range of classes of creditors. Cost (% of estate) 9.0 The majority of the expenses are comprised of attorney fees (up to 5%) and fees of the examiner (4%). Other expenses include services provided by other professionals such as accountants (0.5%) and court fees (0.2%). Recovery rate 86.1 (cents on the dollar) Page 62 Doing Business 2020 Ireland Details – Resolving Insolvency in Ireland – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 10.5 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for 1.0 both liquidation and reorganization Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor 1.0 may file for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (c) Both (a) and (b) 1.0 Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value options are available, of its assets but only one of them needs to be complied with Management of debtor's assets index (0-6) 5.0 Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the Yes 1.0 debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0 Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? No 0.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of Yes 1.0 insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over ordinary 1.0 unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 1.5 Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5 Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as No 0.0 what they would obtain in a liquidation? Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote Yes 1.0 separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency No 0.0 representative? Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0 Does the insolvency framework provide that a creditor has the right to request information from the insolvency No 0.0 representative? Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting Yes 1.0 creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Page 63 Doing Business 2020 Ireland Employing Workers Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business. The most recent round of data collection was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions about the worker and the (i) whether fixed-term contracts are prohibited for permanent business are used. tasks; (ii) maximum cumulative duration of fixed-term contracts; (iii) length of the maximum probationary period; (iv) minimum The worker: wage;(v) ratio of minimum wage to the average value added per - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. worker. - Is a full-time employee. - Is not a member of the labor union, unless membership is mandatory. Working hours (i) maximum number of working days allowed per week; (ii) The business: premiums for work: at night, on a weekly rest day and overtime; - Is a limited liability company (or the equivalent in the economy). (iii) whether there are restrictions on work at night, work on a - Operates a supermarket or grocery store in the economy’s largest business city. For 11 weekly rest day and for overtime work; (iv) length of paid annual economies the data are also collected for the second largest business city. leave. - Has 60 employees. - Is subject to collective bargaining agreements if such agreements cover more than 50% of the Redundancy rules food retail sector and they apply even to firms that are not party to them. (i) whether redundancy can be basis for terminating workers; (ii) - Abides by every law and regulation but does not grant workers more benefits than those whether employer needs to notify and/or get approval from third mandated by law, regulation or (if applicable) collective bargaining agreements. party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected. Page 64 Doing Business 2020 Ireland Employing Workers - Ireland Details – Employing Workers in Ireland Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single fixed-term contract (months) No limit Maximum length of fixed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 1933.8 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 12.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 0.0 Restrictions on night work? No Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 20.0 Paid annual leave for a worker with 5 years of tenure (working days) 20.0 Paid annual leave for a worker with 10 years of tenure (working days) 20.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 20.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party notification if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party notification if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 1.0 Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.0 Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 6.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 3.7 Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 11.0 Page 65 Doing Business 2020 Ireland Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 21.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 10.7 Unemployment protection after one year of employment? No Page 66 Doing Business 2020 Ireland Business Reforms in Ireland From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. =Doing Business reform making it easier to do business. = Change making it more difficult to do business. DB2019 Registering Property: Ireland made property registration more costly by increasing the stamp duty on a non-residential property transfer. Getting Credit: Ireland improved access to credit information by establishing a new credit registry. Enforcing Contracts: Ireland made enforcing contracts easier by introducing a consolidated law on voluntary mediation. DB2018 Enforcing Contracts: Ireland made enforcing contracts easier by making performance measurement reports publicly available to show the court’s performance and the progress of cases through the court. DB2017 Starting a Business: Ireland made starting a business easier by removing the requirement that a founder seeking to incorporate a company swear before a commissioner of oaths. DB2016 Protecting Minority Investors: Ireland strengthened minority investor protections by introducing provisions stipulating that directors can be held liable for breach of their fiduciary duties. Paying Taxes: Ireland made paying taxes more costly and complicated for companies by increasing landfill levies and by requiring additional financial statements to be submitted with the income tax return. DB2015 Registering Property: Ireland made transferring property easier by enhancing its computerized system at the land registry and implementing an online system for the registration of title. Getting Credit: Ireland improved its credit information system by passing a new act that provides for the establishment and operation of a credit registry. Enforcing Contracts: Ireland made enforcing contracts easier by modifying the monetary jurisdictions of its courts. DB2014 Employing Workers: Ireland ended a 60% rebate for employers on severance payments and eliminated the requirement for third-party notification when terminating a redundant worker. DB2013 Starting a Business: Ireland made starting a business easier by introducing a new online facility for business registration. Registering Property: Ireland made property transfers less costly by introducing a single stamp duty rate for transfers of nonresidential property. It also extended compulsory registration to all property in Ireland. DB2010 Registering Property: Ireland made registering property easier by reducing the maximum chargeable stamp duty for property transactions. Page 67 Doing Business 2020 Ireland Page 68