Unpaid corporation tax

feartheclaw

Registered User
Messages
23
Hello all,
I have a small limited company and am the sole employee
I received a letter from Revenue stating my Corporation tax (CT1) wasn't filed for 2014 even though I thought my accountant had done it in October and I had paid them for it. Just found out there is a liability which I was not aware of and now a penalty of 10%. In the financial statements corporation tax is entered as €1 and there is no entry in tax on profits in notes to financial statements. Each year till now I've avoided CT as I pay myself any profits. I changed accountant in the new year (not related to this issue just found a more suitable one) and my new accountant has raised questions about the quality of the job done. I feel the fee I paid for the completion of accounts should be refunded.
My new accountant has advised to pay Revenue and then look at my options.

Before I challenge my old accountant what are people's views?

Thanks
ftc
 
So your paid the accountants for doing the accounts.

Did they send you a copy of the accounts but did not outline what the profit was and that there was a liability?

If you always take the profit so that the company did not have a CT liability how did you ensure that this was the case in 2014?

If you don't wish to pay CT then increase your salary in 2015 and create a loss and set the loss against 2014. 2015 return has to be filed on time.
 
So your paid the accountants for doing the accounts.

Did they send you a copy of the accounts but did not outline what the profit was and that there was a liability?

If you always take the profit so that the company did not have a CT liability how did you ensure that this was the case in 2014?

If you don't wish to pay CT then increase your salary in 2015 and create a loss and set the loss against 2014. 2015 return has to be filed on time.

Thanks for reply. I've always just kept an eye an what was coming in and paid myself a figure equal to this after calculating PAYE/USC/PRSI. I've got it pretty much bang on each year so far except 2014. It looked fine but there were a few things that I had not included that cropped up at the last minute when they were doing the accounts. So my workings were amended and a profit was declared in the financial statements but Corporation Tax was entered as €1 so I assumed no liability. When asked the accountant did not advise of a CT liability and to make it worse neglected to file the CT1. I know I should have paid more attention but was extremely busy and took it on good faith...

I've paid the CT liability now on advice of new accountant. Can I still increase salary for 2015 even though its 2016 and is it possible to claim CT back on the basis I make a loss in 2015?
 
I've paid the CT liability now on advice of new accountant. Can I still increase salary for 2015 even though its 2016 and is it possible to claim CT back on the basis I make a loss in 2015?
If accountant number 2 can't answer that for you then I think you should be looking for another one sharpish...!
 
Back
Top