Myself and my wife own a small company that provides somewhat specialised consulting advice to banks and other FIs. We are in a position where we currently don't need to take substantial salaries. The company has reasonable non distributed profits for 2022 and 2023 and I am trying to understand whether the Close Company Surcharge needs to be paid on these in light of the Tax Appeals ruling on this issue (76TACD2021).
The services I provide do not require me to be a member of a professional body nor have a specific qualification. There is no regulation by a supervising regulatory entity.
These seem to be the key criteria on which the Appeals' judgement note above was based?
I am aware that I should obtain professional advice but any guidance would be appreciated as if the risk is above moderate it might be better to pay the surcharge rather than incur substantial professional fees (and stress).
What is Revenue's attitude in such situations? I don't believe they challenged the judgement quoted.
Other facts that may be relevant:
1. The company was set up over 12 years ago, it traded continuously for about 18 months but then had infrequent business until the beginning of 2022 (I was working abroad during that time).
2. I did not engage in the same business as a "sole trader" prior to setting up the company.
The services I provide do not require me to be a member of a professional body nor have a specific qualification. There is no regulation by a supervising regulatory entity.
These seem to be the key criteria on which the Appeals' judgement note above was based?
I am aware that I should obtain professional advice but any guidance would be appreciated as if the risk is above moderate it might be better to pay the surcharge rather than incur substantial professional fees (and stress).
What is Revenue's attitude in such situations? I don't believe they challenged the judgement quoted.
Other facts that may be relevant:
1. The company was set up over 12 years ago, it traded continuously for about 18 months but then had infrequent business until the beginning of 2022 (I was working abroad during that time).
2. I did not engage in the same business as a "sole trader" prior to setting up the company.