Terence Flanagan
Ceist:217. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation the position regarding audits (details supplied); and if he will make a statement on the matter. [14098/15]
Amharc ar fhreagraWednesday, 15 April 2015
Ceisteanna (217)
Freagraí scríofa
As part of its work programme for 2010/2011 the Company Law Review Group (CLRG) examined the penalties that apply to companies that do not submit their company annual returns by the statutory deadline. These are known as late filing penalties and include monetary fines and loss of audit exemption for two years. The purpose of the review was to assess the proportionality of those penalties. The CLRG concluded that no change should be made to the level of late filing penalties but it did make a recommendation that where a company seeks a waiver from the payment of late filing fees, the grant of that should not be within the powers of the Companies Registration Office (CRO), but rather should be determined by a court of competent jurisdiction, preferably the District Court. The recommendation was given effect in Section 343 (7) of the Companies Act 2014. I hope to commence the 2014 Act from the 1st June 2015.
Since the late filing fees were introduced in 2001 there has been a significant increase in compliance by Irish companies with their annual filing obligations. Whereas prior to 2001, only 13% of companies filed their annual returns on time, currently over 90% of companies file on time.
I am informed that all companies are advised of their responsibilities under the Companies Acts at the time of incorporation, including their statutory obligations regarding the filing of annual returns and the fact that failure to file annual returns on time results in late penalties, loss of audit exemption and potentially prosecution.
The CRO provides information on its website about these requirements and also issues reminder letters to companies in advance of their Annual Return Date to remind them of their obligations to file annual returns.