Dáil Éireann Debate, Tuesday - 24 July 2018
1243. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation if she will address matters raised in correspondence (details supplied) concerning operational issues at the Companies Registration Office; and if she will make a statement on the matter. [33814/18]
Amharc ar fhreagraSince 1 June 2017 it has been mandatory to file annual returns electronically. When the return has been filed, presenters have the option to certify the return electronically using a ROS signature or to print a signature page and forward it to the CRO. If a signature page is the method chosen, it is the responsibility of the presenter to ensure that the signature page is delivered to the CRO in sufficient time. The signature page may be delivered to the CRO office in person or by post. There is no requirement to send signature pages by registered post.
The CRO is currently implementing a new IT system which, when completed, will allow for signature pages to be uploaded and remove the requirement for them to be physically delivered to the office. It is expected that the new system will go live in the first half of 2019.
There is a wide entitlement to the audit exemption in Ireland. The Companies Act 2014 introduced a significant expansion of the scope of the audit exemption. Firstly, it changed the long-standing rule that a company must meet 3 thresholds to qualify as a small company and entitled to the audit exemption. A company is now considered small and, therefore, entitled to the audit exemption if it meets 2 of the 3 thresholds. Secondly, the 2014 Act extended the audit exemption to more types of company, such as companies limited by guarantee and group companies. Subsequently, the Companies (Accounting) Act 2017 raised the thresholds for a small company to the maximum allowed by EU law as set out in the table.
|
- |
Companies (Accounting) Act 2017 |
Companies Act 2014 |
|
Turnover does not exceed |
€12m |
€8.8m |
|
Balance sheet does not exceed |
€6m |
€4.4m |
|
Average number of employees does not exceed |
50 |
50 |
Therefore, the audit exemption is an important cost saving measure that is open to the majority of Irish registered companies.
However, the entitlement is not an unfettered right. It is given to companies that also have the privilege of limited liability. Therefore, it must be balanced against the rights of others, such as employees and suppliers, to have timely access to company financial information. This is why the entitlement to an audit exemption has been linked to the obligation to file the annual return and financial statements on time since 2003.
Companies can have up to 11 months to prepare and file their financial statements. The Companies (Accounting) Act 2017 further simplified and reduced the content of those financial statements for all small and micro sized companies. Furthermore, where a company loses its entitlement to the audit exemption the Companies (Statutory Audits) Bill 2017, which has now passed both Houses of the Oireachtas, introduces a new rule that removes the requirement to audit the late filed financial year and the following year and instead to require the audit of the financial year in train and the following year. These are practical solutions that will benefit all companies that must file financial information with the Companies Registration Office.
On the issue relating to the administrative restorations, I understand that since 1 September 2016 cheques have not been accepted as payment in respect of restoration applications. CRO publicized this in July 2016 in its Ezine and on the CRO website. The Administrative Restoration section on the CRO website clearly states as follows:
“Payment must be made by bank draft or postal money order. Payment by credit/debit card is accepted at the Public Office in Dublin. Cheques are no longer an accepted method of payment for restoration applications.”
From the details supplied by the Deputy, I note that while the cheque had to be returned, it is acknowledged that the Enforcement Unit of the CRO did make arrangements to facilitate the payment from the client account and thus ensured that the application for restoration could be received in the CRO by the deadline.
