I have been advised by the Revenue Commissioners as follows. Since the enactment of the 1995 legislation, 2,622 companies have identified themselves as neither resident in the State nor carrying on a trade in the State followng receipt of notices from Revenue. A breakdown of the territories in which the central management and control is carried out could not be provided in the time available. However, from a sample of cases examined the following territories were indicated — Jersey, Sark, Isle of Man, Turkey, Cyprus, Hong Kong and a number of Eastern European countries.
Section 58 of the Finance Act, 1995 came into law on the passing of the Finance Act, 1995 with effect from 6 April 1995. No prosecutions have been taken against Irish registered non-resident companies for failure to comply with the section. Unless a company declares itself to be non-resident, there is no way of identifying it as such from the details filed with the Companies Registration Office. The companies which identify themselves as non-resident are likely to do so as part of their compliance with section 58 of the Finance Act, 1995. Non-resident companies which do not identify themselves as such cannot be distinguished from other companies on the register. The issue is further complicated by the fact that companies on the register which are not non-resident have no obligation to furnish information until such time as they commence to carry on a trade. In any event, because of the very nature of the non-resident companies, there is usually nobody in the State against whom prosecutions can be initiated.
Because it is not possible for Revenue to know the residence status of a newly registered company, there are limitations on their ability to monitor compliance with the section. I would point out, however, that a formal notice requesting information under the section is issued by Revenue to all newly registered companies. These notices are issued according as Revenue receive notifications, in batches from the Companies Registration Office of the incorporation of new companies. As the Deputy will be aware the question of new measures in relation to the activities of non-resident companies is under active consideration.
