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REDUCED INTEREST RATE APPLICABLE TO NON- COVID-19 TAX LIABILITIES

As part of the measures included in the July Stimulus package, a reduced interest rate on overdue non-COVID-19 tax liabilities has been introduced.

Where a taxpayer enters into a payment arrangement with Revenue in respect of non-COVID 19 tax liabilities before the 30th of September a reduced interest rate of 3% will be applicable to the debt.  With interest rates on outstanding tax liabilities typically ranging between 8%-10% per annum, this is a welcome development for taxpayers struggling to deal with outstanding tax debts.

If the taxpayer has previously entered into a payment arrangement the reduced rate of 3% will apply to the outstanding tax liability as of the 1st of August.

If you currently have outstanding tax liabilities arising from the pre-COVID-19 period it is important that you engage with Revenue without delay to avail of the reduced rate.

If you require any assistance, please do not hesitate to contact a member of the Cooney Carey tax department at 01 677 9000 or by email at info@cooneycarey.ie

To keep in touch, connect with us on LinkedIn.

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    Posted on September 3, 2020 by Cooney Carey

    ACCELERATED LOSS RELIEF FOR COMPANIES

    As part of the July Stimulus package recently announced, companies incurring losses in 2020 may be able to make a claim to elect for 50% of the estimated losses to be allocated against prior profits, thereby resulting in a tax refund or a reduction in the level of corporation tax being paid.

    To avail of this scheme, a company will need to be satisfied that it expects to incur a loss in an accounting period which includes some or all of the period commencing on the 1st of March 2020 and ending on the 31st of December 2020.

    The company should estimate the amount of the expected loss and keep detailed calculations as to how the estimate was arrived at.  The company can then make a claim to Revenue to have 50% of the estimated loss set off against the previous period’s corporation tax liability. 

    The claim to Revenue can be made as early as 4 months from the beginning of the loss-making period and up to 5 months after the end of the period.  Companies can therefore potentially receive 50% of their corporation tax refund during the loss-making period, rather than waiting until the accounts had been completed and corporation tax return for the loss-making period submitted to Revenue before a loss claim could be submitted.

    To be eligible to make a claim the company must be fully tax compliant. Where a company has entered into a debt warehousing agreement or a payment arrangement with Revenue it will be considered tax compliant.

    If you believe that the above may be of benefit to your company, please do not hesitate to contact a member of the tax team at 01 677 9000 or by email at info@cooneycarey.ie

    To keep in touch, connect with us on LinkedIn.

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      Posted on September 3, 2020 by Cooney Carey

      COMPANIES (MISCELLANEOUS PROVISIONS) (COVID 19) ACT 2020

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      The Companies (Miscellaneous Provisions (Covid-19) Act 2020 which has now been signed into law makes, temporary amendments to the Companies Act 2014 for an interim period up until the 31st December 2020 in response to the challenges Companies may experience as a result of the Covid-19 pandemic. This interim period can be extended further under the provisions of the Act should the Government decide this is warranted.

      The key measures provided for by the Act are as follows;

      • Annual General Meetings (AGMs) and general meetings can be convened and held by wholly or partly by electronic means, as long as those entitled to attend have a “reasonable opportunity to participate” including a mechanism for casting of votes by a member whether before or during the meeting. This mechanism shall not require the member to be physically present at the general meeting or require the member to appoint a proxy who is to be physically present at the meeting. The AGM can also be postponed to a date up to 31st December 2020.
      • Dividends which were approved by the directors before or during the pandemic may be reduced or cancelled due to the “actual or perceived consequences of COVID-19 on the affairs of the company”
      • Solvency debt threshold has been raised from €10,000 (for an individual creditor or €20,000 for two or more creditors) to €50,000 for both individual and aggregate debts.
      • Examiners may in “exceptional circumstances” apply to increase the period of examinership to 150 days from the current 100 days.
      • Documents to which the common seal is affixed to may now be signed in counterpart by one director and the company secretary or by two directors were previously all signatures were required on the same document.

      The Act has provided clarity on how companies can deal with specific issues arising as a result of the Covid-19 situation.

      Should you require further assistance in this regard please contact Mary Flanagan or Louise Edwards on 016779000 or info@cooneycarey.ie for further details.

      To keep in touch, connect with us on LinkedIn.

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        Posted on September 1, 2020 by Cooney Carey

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