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The momentum for Corporate Ireland to prepare for Brexit is finally gaining traction.
Hard or soft exit is not particularly relevant at this point. For now, corporate Ireland should have a schedule of events noting person responsible for reviewing/implementing, and deadline for completion. Some of the areas are outlined below.
- Auditor registration status – in event of a no deal Brexit Auditors based in the UK will no longer meet the eligibility criteria for approval as EU statutory auditors. This means they will no longer be:
(a) entitled to hold audit appointments for Irish companies;
(b) sign audit reports; and
(c) eligible for inclusion on the Irish audit register.
This is something that should be put on your company’s Risk Register. Failure to have an appropriate Auditor in place in time will impact on the signing,
adoption, and filing of Financial Statements.
- Brexit NI – do not forget Northern Ireland will be included in the UK Brexit from the European Union. This seems to be a common problem for a number of companies probably because both jurisdictions are on one island.
- Data Protection – once the UK leaves the EU it will become a “third country” and must be treated as one would any other non-EU state. This will have an immediate impact on the transfer of data between Ireland, and the UK, e.g. companies with inter-company loans, payroll operations, access to group intranets, transfer of public data, etc.
There will be no “transition” period for data protection, it will be effective immediately.
- Director residency – in the event the UK leaves EU without a deal in place companies which have only UK resident director(s) will be required to comply with S.137 Companies Act 2014, i.e. they must have either:
(a) director resident within the EEA; or
(b) bond with appropriate insurers for minimum of two years; or
(c) exemption on the grounds the company has a “real and continuous link with one or more economic activities being carried on in the State”.
This means that companies currently relying on a director resident in the UK (as resident within the EEA) will have to re-consider its options.
- Legislation – the Government started debate on the Omnibus Bill on 25.02.2019. The Bill covers a variety of areas including health (reimbursement & medical care), finance (taxation), transport (sea & bus travel), legal (extradition & immigration).
- Licences – companies must review all licences, accreditations, authorisations, etc, to ensure they remain in force or, are applied for, to ensure compliance following Brexit.
- Revenue – consider logistics of import, export, movement of goods on the island of Ireland. Levying, collecting and payment appropriate customs duties, VAT, taxes, etc. Payroll could be a hidden bump, e.g. staff working in Ireland subject to UK contract or, staff working in Ireland but, payroll managed in UK/NI.
While ultimately the shape of Brexit may still be unknown, what is known is that Corporate Ireland can no longer adopt a wait and see approach. Action must be taken – now.
2019 KEY DATES
01.01.2019 New Year’s Day - last chance to relax before going back to work
01.01.2019 PAYE Modernisation
02.01.2019 Relax, you are one of the few people actually back at work
08.01.2019 Earth Rotation Day – commemorating Leon Foucault who determined Earth rotated on its axis in 1851.
28.01.2019 Global International Data Protection Day – yes more GDPR!
January Make sure you have set up dates for all quarterly board meetings during 2019
01.02.2019 CAO applications deadline
02.02.2019 Six Nations Rugby England V Ireland
17.03.2019 St. Patricks Day - one day in the year when everyone is happy to be seen in public with green face paint
and Shamrock Hats!
21.03.2019 Local Property Tax deadline – if paying full amount in one go.
3.03.2019 Mother’s Day – do not give her flowers bought at the petrol station on the way home!
March Quarterly Board Meeting
21.04.2019 Easter Day
22.04.2019 No groaning – you knew what you were doing when you eat all those chocolate Easter eggs
April Audit – make sure someone is actively managing the Audit which includes telling the Auditors!
06.05.2019 Bank Holiday - May Day
09.05.2019 Europe Day
03.06.2018 Bank Holiday
16.06.2018 Father’s Day
June Quarterly Board Meeting
01.07.2019 International Kissing Day – why, what’s wrong with kissing every day?
02.07.2019 UFO Day – that’s more like it, bring it on ET!
04.08.2019 Single Working Women’s International Day
05.08.2019 Bank Holiday
30.09.2019 Annual Return Date for bulk of companies – panic or call us!
September Quarterly Board Meeting
28.10.2019 Annual Return – deadline for electronic filing
28.10.2019 Bank Holiday
11.11.2019 – 15.11.2019 Charity Trustee’s Week
23.11.19 Pay first payment of Corporation Tax
24.12.2019 Santa Claus is coming – go to bed
25.12.2019 Make sure the oven is on, and the turkey is in!
December Quarterly Board Meeting
New Customer Portal in the Registry of Friendly Societies
The Registry of Friendly Societies (RFS) is responsible for the efficient and effective registration and general regulation of over 1,000 Friendly Societies, Industrial and Provident Societies and Trade Unions in Ireland.
The RFS first foray into an online presence occurred in 2012 so, the launch this month of a new customer portal is a timely and welcome enhancement to all users. The portal will enable a substantial level of business to be carried out online such as:
- creating a new entity; and
- filing Annual Return and amendments.
Apart from the ease of online filing, Users will be able to avail of reduced fees for online filings. Quite how valuable the reduction of fees will be to Users is questionable given the total average annual filing fees paid to the RFS appears to hover around €46,000 to €50,000 per annum. As my Grandmother always said “Every mickle makes a muckle” so, improving filing capabilities whilst also providing for some cost savings can only be a good thing.
Nathan Lemon (unsplash)
New Charity Governance Code
The Charity Regulator launched a new governance code for charities last week. It sets out a basic standard made up of 6 governance principles i.e. Advancing Charitable Purpose, Behaving with Integrity, Leading People, Exercising Control, Working Effectively and being Accountable and Transparent. There are 32 core standards outlined in putting the six principles in place with additional standards for more complex charities
On reviewing the standard it might appear detailed, however, it won’t be daunting for most well-run charities who will already have processes in place to deal most of the core standards e.g. managing conflicts of interest, financial controls and hold regular board meetings etc.
Charities will be expected to be compliant with the code from 2020 and begin reporting on their compliance in 2021 which gives organisations ample time to review and implement the code. The Charities Regulator has wisely identified that the key to implementation is to ensure board engagement. Directors must review and approve the charities implementation, therefore by supporting its implementation, challenges can be addressed more readily.
All companies are required to keep adequate accounting records but, what precisely does “adequate accounting records” mean?
Adequate accounting records are records which:
- correctly record and explain transactions of a company;
- detail assets, liabilities, financial position, profit or loss of a company; and
- enable directors to prepare annual financial statements.
The type of information which must be contained within the accounting records should cover information such as outlined below.
- All monies received and spent
- All assets and debts
- All purchases and sales
- Records of stock held
- Records of services purchased or provided
- Record of all goods bought and sold, including a record of itemised invoices
Time is money so, handling all of the above personally may not be the most cost effective option for a company.
- having a qualified book-keeper (part-time or full-time)
- retaining information in a simple format - does not have to be a costly bespoke piece of software.
Ireland itself is seen to be in the top ten countries in the world for innovation with the highest population of Science and Engineering Graduates in the OECD.
Companies considering Ireland as a potential location will have no difficulty amassing substantial information on the benefits of locating and working in Ireland. The challenge is to find an efficient way through that labyrinth of seemingly contradictory material.
One of the first ports of call should be the IDA – Ireland’s inward investment promotion agency – which actively promotes and support Foreign Direct Investment into Ireland. The IDA will help companies considering setting up or investing in Ireland by facilitating Site visits, access to Universities, provide Advice, etc.
Apart from having IDA contacts in Ireland itself, the IDA has representatives around the world ensuring decision makers in Global Head Offices can access onsite visits and clear data on the benefits of locating in Ireland.
The IDA highlights some interesting facts on businesses located in Ireland, and reasons why.
- 17 of the top 20 global software companies
- 14 out of 15 top medical tech companies
- 20 out of 25 top financial services companies
- 10 out of 10 top pharma companies
- 8 out of 10 top industrial automation companies
- 9 out of 10 top global software companies operate in Ireland
- 3 of 5 top games publishers based in Ireland
- 25% tax credits for Research & Development
Do not take our word for it, visit the IDA website https://www.idaireland.com/ and see for yourself.
30.07.2018 saw the introduction of the Criminal Justice (Corruption Offences) Act 2018. At first glance it looks like a potentially terrifying piece of legislation, and frankly continues to do so even after second and third glances.
The new Act has implemented six specific recommendations of the Mahon Tribunal. Of particular interest is that the Act covers corporate bodies, and individuals but, also covers Irish Officials.
Key offences of the Act.
- New offences of Active and Passive Trading
- New offence of an Irish Official doing a Corrupt Act
- New offence of giving a Gift or Advantage
- New offence for Creating or Using False Documents
- New offence of Intimidation
Presumptions of the Act.
- Presumption of corrupt gifts extended to “connected persons”
- Presumption of corrupt donation expanded
New provisions include:
- Forfeiture of public office, and prohibition from seeking public office for Irish officials
- New strict liability offence for bodies corporate
- Provisions for seizure and forfeiture of bribes
This Act broadens definitions of corruption, covers a wider range of individuals, and includes Irish Officials. It also provides for potential prison sentences up to 10 years, forfeiture of bribe, forfeiture of office (Public servants and elected Officials) up to 10 years and unlimited corporate fines.
This is a radical overhaul of anti-corruption in Ireland which companies, at the very least, should take time out to consider if their policies are sufficiently robust.
Filing Annual Returns and Financial Statements - FAQ
September is the month panic can set in as Companies suddenly focus on their filing deadlines for their Annual Return and Financial Statements. Confusion can surround terminology, deadlines, and signatures required.
Below are answers to some of the most frequently asked questions (FAQs) KomSec Limited receives from our clients at this time of year.
* Annual Return Date (ARD) date up to which information contained in the Annual Return is made, e.g. up to 30th September.
* 28 days after ARD the Annual Return must be filed electronically within 28 days from ARD.
* 28 days after electronic filing the original signed signature pages must be received by the Companies Registration Office (CRO) within 28 days from the
date on which the Annual Return was filed electronically.
* First Annual Return does not have to file Financial Statements.
* Financial Year – A company’s first financial years end can end no more that 18 months after its incorporation date. Subsequent financial years must start
the day after the last financial year end and be for 12 months, + or – 7 days.
* Nine month rule means that companies must file their FS within a maximum of 9 months and 28 days of the end of their financial year, known as the 9
* Financial Statements must be filed electronically before or on day original signed signature pages are received by the CRO.
* Financial Statements size is restricted by the CRO to a maximum of 5mbs.
* Signatures for Annual Return are one Director and the Company Secretary.
* Signatures for Financial Statements must be typed.
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