C2 Refusal - liquidation

S

simplyjoe

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My client was refused a C2 recently. He was a director and minority shareholder of a company that was liquidated owing the revenue approx 5K. The inspector refused the C2 on this basis. Can he do this? Surely a company debt remains a company debt.
 
I know that Revenue generally expect proprietory directors of companies with C2's to have both company and personal taxes in order for C2's to be granted. However once the company is liquidated and assuming no restriction or disqualification orders on the directors, I would not have expected an individual application to be refused like this. I wonder is this actually written in Inspector Manuals somewhere? Is it possible to get from Revenue the actual provision under which they deem this refusal to be in order?

Appeals may be lodged against C2 refusals under S.531(17)TCA97 within 30 days of the refusal.
 
A C2 can be refused if applied for before the ODCE has completed its processes with the liquidation (made a decission on restriction)
 
The revenue have the right of refusal under Section 531 11(a) and they are enacting this legislation. I have clients in Sligo, Mayo and Galway County revenue districts who have had this enforced. I have also been contacted by a colleague who had a client who had an audit. The auditor added back paye tax claimed on a form 11 where the P60 issuing company had not paid the relevant paye over to the collector. The client was a proprietory director. Beware!!
 
I think it is a good that the Revenue have rejected the C2, there have been several posts on AAM alone about directors closing down and reopening and creditors getting "cought" for sums of money a second time. At least this way the Revenue are protecting themsleves to a certain degree!
 
I see where you are coming from but a blanket refusal is tough. People get into trouble for many different reasons. One of my clients was liquidated because the main contractor on a job he was involved in was liquidated owing him €240k. Is he to be refused the right to earn a living because this other company went into liquidation? Common sense must apply. The attitude of 'burn them burn them!!!' also results in many innocent people also suffering. The problem is how do we catch the deliberate defaulters.

When I say 'beware' I mean advisors and individuals must recognise that this is one possible outcome from a liquidation.
 

Can your client not get work and have C45 certs issued?
 
Some work but many main contractors refuse to work with non C2 subbies. Also unable to quote for jobs like schools, halls, council, etc..
 
well perhaps it would be a bit harsh for Revenue to make this a policy but perhaps it is necessary to reduce risks.

I appreciate that in your clients case you ssay that the company went into liquidation due to a bad debt but i could argue it was not a responsible action for your clients to have carried out such a large job etc etc.
 
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