The package of taxation and company law measures introduced by us in 1999 and 2000 to address problems arising from the use of Irish registered non resident companies – IRNR's – for undesirable purposes, provide that all companies have to be linked more closely to the State and interface more fully with the Revenue Commissioners and the Registrar of Companies, in compliance with a range of new requirements in company and taxation law.
The key change is in the taxation area as a result of which all companies registered under the Companies Acts are now regarded as being resident in the State for tax purposes, except for companies meeting specific criteria specified in the Finance Act, 1999. The effect of this is that the IRNR structure is no longer generally available. Going forward, therefore, only companies meeting Revenue's criteria can qualify for the IRNR status under the 1999 Finance Act.
In relation to the position of companies in existence prior to the coming into operation of the new measures Revenue has written to approximately 80,000 such companies. These are companies which are incorporated in the State but which had not made contact with Revenue for the purposes of registering for tax.
Approximately 35,000 of these companies have been struck off the Companies Office register, either voluntarily or on foot of that Office's procedures. 1,100 companies have been struck off the register following notification, under the 1999 Finance Act provisions, to the registrar by Revenue that the companies had failed to furnish Revenue with the required information. In addition, Revenue has recently forwarded to the registrar a further list of 7,000 companies which have failed to furnish Revenue with information. The registrar has commenced strike-off proceedings against these companies.