Small companies
A small company is a company whose Corporation Tax liability in the preceding accounting period does not exceed €200,000. Such a company has the option of basing its preliminary tax on the corresponding Corporation Tax liability for the preceding accounting period.
The above is an extract from the revenue website with regard to whether you are a small or large company. I work for a company who had a final tax liability of under €200,000 for 2014. We paid preliminary tax for 2015 on the basis of being a small company for 2015. Our final tax liability for 2015 is in excess of €200,000. Our auditor is now telling us we were late paying our preliminary tax for 2015 as we are a large company and that we need to pay the balance immediately to stop the interest and penalties accruing.
Is the auditor right or are we still a small company for 2015 as per the revenue guidelines? I know we are a large company for 2016 and will pay preliminary tax accordingly.
A small company is a company whose Corporation Tax liability in the preceding accounting period does not exceed €200,000. Such a company has the option of basing its preliminary tax on the corresponding Corporation Tax liability for the preceding accounting period.
The above is an extract from the revenue website with regard to whether you are a small or large company. I work for a company who had a final tax liability of under €200,000 for 2014. We paid preliminary tax for 2015 on the basis of being a small company for 2015. Our final tax liability for 2015 is in excess of €200,000. Our auditor is now telling us we were late paying our preliminary tax for 2015 as we are a large company and that we need to pay the balance immediately to stop the interest and penalties accruing.
Is the auditor right or are we still a small company for 2015 as per the revenue guidelines? I know we are a large company for 2016 and will pay preliminary tax accordingly.