Section 343 Application to Retain Audit Exemption

Companies miss the annual return filing deadline for various and legitimate reasons and the penalty for missing the filing deadline even by one day is very severe! A company that files late will lose audit exemption for the following two financial years. This can have a significant impact on the viability of an SME company.

As Irish people we are addicted to deadlines so the risk of leaving the filing of the annual returns and the financial statements leaves no room for things going wrong or the post being delayed or going missing.

For more information on Missing Annual Return Deadlines and making a Court Application click here

Click here to download our District Court Application Form

Section 343 District Court Application

Companies that have missed the filing deadline can make an application to the local district court seeking an order to extend the time to file the annual return and financial statements. If the order is granted by the Court and the company files the annual return and financial statements in the time period granted by the Court, the company will have deemed to have filed on time with no loss of audit exemption or late filing penalties applying.

Reasons for Missing the Deadline

The affidavit that is filed in Court must set out the reason why the company was not in a position to file on time. A company must have evidence to support this reason to give it the best chance to obtain the order.

When the papers have been filed in the District Court, they must also be served on the the Companies Registration Office (CRO). The CRO have advised that they will object to any application in the following circumstances:-

  • the reasons provided in the Affidavit and the supporting facts do not, in the opinion of the Registrar, explain or verify why it was not possible to deliver the annual return to the CRO within the time permitted by sections 342(2) or 343(3) Companies Act 2014.
  • The documentation was lost or delayed in the post and no proof it was sent
  • the applicant company is a dissolved company.
  • the company has previously obtained an extension of time for the same annual return year.

The CRO may attend the court hearing and make their representations in person so it is important that you have sufficient evidence to support your application and an experienced solicitor to make the application in Court.

Extend Time to File a Late Annual Return – District Court Application Process, Whats Involved?

What is the process?

The CRO have issued an information leaflet on the process (Information Leaflet 39).

In summary, the process is as follows:-

  • Make an application for a court date
  • Serve copy of notice and affidavit on CRO putting CRO on notice of the application at least 21 days before the Court date
  • File affidavit and declaration of service and CRO’s Letter of Acknowledgement witht the District Court four days before the court date
  • When order is granted showing the new filing date the order should be filed at the CRO usually within 28 days of the Court date
  • The company must deliver the annual return to the CRO, or submit it electronically, on or before the new extended date provided by the Court. If the company files the return electronically on or before the new extended date, it has 28 days from the date of submission to deliver the signature page and financial statements to the CRO.

In order for your application to be processed All Of The Following must be provided before we can begin:

  • Fully Completed Application form
  • All Outstanding Annual Returns
  • All Outstanding Financial Statements
  • Notice of strike off (if applicable)
  • Any medical records/evidence of reasons for failing to file

N.B. We cannot process the application or draft the affidavits until All the Above have been forwarded to us.

How Can CLS Help

We can assist with making the application to the District Court and use an experienced law firm to make the application so you have the best possible chance of obtaining the order. We make all our applications in the Dublin District Court so we have certainty on when these cases will be heard. We arrange for the registered office address to be changed temporarily to Dublin to facilitate the application.

If you require assistance with making a Sec 343 Application please contact one of the team on 059 9186776 or send us an email.

Click here to download our District Court Application Form

Please Note:

Our CLS Insights aims to bring you practical information and news on Company Law and Company Secretarial. We cover the topics that matter to your business and give practical tips and also the benefit our experiences. Please remember this article is a guide and legal advice should always be obtained. If you have any queries please contact one of the team and we would be happy to help.

 

Please Note:

Our CLS Insights aims to bring you practical information and news on Company Law and Company Secretarial. We cover the topics that matter to your business and give practical tips and also the benefit our experiences. Please remember this article is a guide and legal advice should always be obtained. If you have any queries please contact one of the team and we would be happy to help.

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