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Dáil Éireann díospóireacht -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Companies Regulations.

John Cregan

Ceist:

379 Mr. Cregan asked the Minister for Finance the situation regarding the legal requirements of regulatory authorities including the Companies Office, the Revenue Commissioners, the Corporate Enforcement Office and others, in relation to the winding up of a community club which was registered as a limited company; the requirements, returns and procedures which are required by the regulatory authorities; if legal, financial or practical advice is available to the group who are without cash or assets due to their leased property and assets, for example buildings thereon, having been surrendered back to the local authority; and if he will make a statement on the matter. [20701/03]

As no information has been provided to identify a specific community club, my reply can only deal with the question of liquidation in general, and in so far as it is of relevance to the Revenue Commissioners, given that the other agencies referred to by the Deputy are primarily the responsibility of my colleague the Tánaiste and Minister for Enterprise, Trade and Employment.

I am informed by the Revenue Commissioners that their principal concern in relation to liquidations is to ensure that outstanding taxes, if any, are paid. Where a liquidation relates to the winding up of a solvent company, it is to be expected that all outstanding liabilities will be paid as part of the winding up process. Where the company being wound up is insolvent the amounts recover able are determined in accordance with the Companies Acts and the Taxes Acts. As provided in these Acts, Revenue has super preferential status for all outstanding PRSI, preferential status for the most recent years outstanding fiduciary taxes, principally PAYE, VAT and relevant contracts tax, and preferential status for any one year's corporation tax.
The Revenue Commissioners actively monitor all liquidations, attending most meetings of the creditors and actively participating in committees of inspection where this is considered necessary. On occasions, the Revenue Commissioners petition the courts for appropriate action where they are dissatisfied with the conduct of a liquidation or with the legality proceedings at a creditors' meeting.
The Revenue Commissioners also petition the courts for the winding up of companies where Revenue is a significant creditor. Such petitions are usually made following formal demand for payment in accordance with section 214 of the Companies Act 1963, or exceptionally by application to the High Court for the appointment of a provisional liquidator. All decisions to seek the liquidation of a company are approved at senior management level in Revenue.
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