When it Comes to Tax Returns,
Why It Is So Important to File Your Annual Return on Time
Recent legislative amendments have resulted in a modification to the application of a portion of the penalty that is imposed for the late filing of annual returns. If a company is late in filing its annual return, the company will not lose its entitlement to an audit exemption in the financial year in which the return was filed late; rather, the company will lose its entitlement to an audit exemption in each of the two years that follow the year in which the return was filed late. Because of this adjustment, an audit of the previous year that has already been finished will not be necessary, which will save money and time. This modification is governed by section 10 of the Act of 2018, which went into force on the 21st of September, 2018 and can be viewed as having an immediate impact.
What responsibilities does a firm have to fulfil?
A corporation is required to provide the CRO with both an annual return and a set of financial statements on an annual basis.
When is the cutoff date for a corporation to submit a return? Every organisation has a deadline for filing their yearly returns (ARD). The annual return and accompanying financial statements have to be submitted by the company no later than 28 days after the date on which the return is due.
What steps are taken after the CRO is in possession of the documents? The CRO will scan the annual return as well as the abbreviated accounts, and these digitised documents will be made available to the public online upon request. According to the Company Law, a limited liability company is required to give the public access to the documents it files with the CRO.
What are the repercussions that the business may face if it is late in submitting its returns and accounts to the CRO? If a firm misses the deadline to file its annual return with the CRO, it will be subject to a late fine that is equal to €100 + €3 per day. Additionally, the business will not be eligible for a "audit exempt" status for the subsequent two years following the late year. Before the financial statements can be sent in to the CRO, an auditor will need to look them through and give their stamp of approval, which may be a very expensive process. If your company has audit exempt status (which the vast majority of small Irish businesses do automatically qualify for), it is very crucial that the company meets all deadlines with the CRO in order to keep its audit exempt status and to avoid any extra charges.