ICAI welcomes Revenue announcement on start-up companies
The Institute of Chartered Accountants in Ireland (ICAI) has welcomed the announcement by the Revenue Commissioners that they would apply the principle announced by Minister Cowen in the Budget on the payment of preliminary corporation tax to small companies in a start-up situation who had their first accounting period ending in 2006.
Director of Taxation ICAI Brian Keegan said: “Start-up companies with an accounting period ending in 2006 were obliged to make their preliminary tax payment approximately one month before the end of the accounting period.
"Some of those companies were unaware of this obligation. The announcement by the Revenue is very welcome. It means that those start-up companies who did not meet their payment obligation as a result of the misunderstanding need not be concerned.
"Minister Cowen announced a change for preliminary tax payment dates on or after December 6th 2006 (Budget Day). What Revenue is doing today is applying this principle to preliminary tax payment dates arising before Budget day.”
The announcement means that start-up companies with a total tax liability less than €50,000 in their first year which occurred in 2006 can pay their full tax nine months after the end of the accounting year.
“ICAI had been in consultation with Revenue on this issue and are particularly pleased that Revenue has responded to the concerns expressed to them during the normal consultative processes involving representative bodies,” concluded Mr. Keegan.
