Hi,
I am closing a small Limited Company that ceased trading last year (Dec 2015) after a bad year.
The two directors took their salary as usual until December, when the company ceased trading with the loss of its last contract.
The company made a small profit in 2014 and a big loss in 2015.
The 2014 tax bill of 3000 Euro is still outstanding, and I'm about to contact revenue regarding the situation.
Is there a possibility to write off the outstanding 2014 profit/corpo tax bill against the 2015 losses and thereby negate the outstanding amount?
Please say yes
Thanks in advance for any responses,
Ludecc
Edit: I forgot to mention I was thinking of a Terminal Loss:
Corporation tax: relief for terminal loss in a trade [Section 397 TCA 1997]
Terminal Loss Relief
This section provides that a loss incurred in the last 12 months of a discontinued trade, insofar as it cannot be otherwise relieved, may be carried back and set against the trading income of the same trade in the 3 preceding years. The relief provided by section 397 broadly corresponds to the income tax relief of section 385. A terminal loss is a trading loss incurred within the twelve months before the date of cessation. It may be used to reduce income of the same trade arising in the three years immediately preceding those twelve months; but relief under section 397 is given only in respect of losses which cannot be otherwise relieved. The loss is to be set against income of a later period in priority to an earlier period and is not to displace relief already given or capable of being given for losses carried forward from earlier periods
I am closing a small Limited Company that ceased trading last year (Dec 2015) after a bad year.
The two directors took their salary as usual until December, when the company ceased trading with the loss of its last contract.
The company made a small profit in 2014 and a big loss in 2015.
The 2014 tax bill of 3000 Euro is still outstanding, and I'm about to contact revenue regarding the situation.
Is there a possibility to write off the outstanding 2014 profit/corpo tax bill against the 2015 losses and thereby negate the outstanding amount?
Please say yes
Thanks in advance for any responses,
Ludecc
Edit: I forgot to mention I was thinking of a Terminal Loss:
Corporation tax: relief for terminal loss in a trade [Section 397 TCA 1997]
Terminal Loss Relief
This section provides that a loss incurred in the last 12 months of a discontinued trade, insofar as it cannot be otherwise relieved, may be carried back and set against the trading income of the same trade in the 3 preceding years. The relief provided by section 397 broadly corresponds to the income tax relief of section 385. A terminal loss is a trading loss incurred within the twelve months before the date of cessation. It may be used to reduce income of the same trade arising in the three years immediately preceding those twelve months; but relief under section 397 is given only in respect of losses which cannot be otherwise relieved. The loss is to be set against income of a later period in priority to an earlier period and is not to displace relief already given or capable of being given for losses carried forward from earlier periods
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