# Corporation tax return form CT1 or charity exemption for management company



## lantus (7 Feb 2014)

How many of you are registered as a charity with revenue?

Or do you just complete a CT1 form as NIL and return it?

Interested to know, cheers.


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## Joe_90 (7 Feb 2014)

We have a charity.

We had to do a CT1 the first year so I filled in all the accounts panels and then entered 0 in the profit box.

The Revenue have since lifted the requirement to file a CT1 so don't file anything now.


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## Setanta12 (7 Feb 2014)

I'd advise completing the Return as a normal company, and then after it has been submitted - tothen set about obtaining charitable status.

Are you in fact a charity?  What does the charity do?  How many people including directors are employed? Do the directors get a salary (however minor) ?


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## Leo (7 Feb 2014)

Is this in relation to management companies?


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## lantus (7 Feb 2014)

Leo said:


> Is this in relation to management companies?


 
Yes, apologies if this isn't clear but this is in relation specifically to Management Company's that are non profit organisations and limited by guarantee having no share capital where the directors are volunteers and the company has no employees.

So based on above the current advice is to complete the CT1 form as NIL and then look at getting charity status for future years? I'm guessing I wont be able to apply for charity status for the year just gone?


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## Leo (7 Feb 2014)

Thanks Lantus


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## Joe_90 (7 Feb 2014)

A management Company would not get charity status!

I'm not sure what you think a charity is but managing an estate is not charitable.

If the developers are gone from the board the tax office may exempt the company from filing returns.  But this is not the same as a charity.


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## lantus (7 Feb 2014)

Joe_90 said:


> A management Company would not get charity status!
> 
> I'm not sure what you think a charity is but managing an estate is not charitable.
> 
> If the developers are gone from the board the tax office may exempt the company from filing returns. But this is not the same as a charity.


 
Why would the developers no longer being directors exempt the company from filling a tax return?


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## Setanta12 (8 Feb 2014)

lantus said:


> Why would the developers no longer being directors exempt the company from filling a tax return?



I think he means that once the management company can demonstrate its not being controlled by (for profit-) developers, that the company can more easily apply for an exemption not to file CT1s.  (There are of course the usual hurdles of stating no trade/submission of Memo & Arts etc/no salaries etc (cannot recall if this last one is correct from my experience))


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## lantus (10 Apr 2014)

Can any other directors clarify if they have a corporation tax liability? We have just been advised that we must pay this at the rate of 12.5% on any money we don't spend at the end of the year as any surplus will be classed as profit according to revenue. This is despite us being a non profit company limited by guarantee and no director or officer being able to take any salary. No one can make 'a profit'.

 Money we fought hard to put to one side to add to next years service fee to make critical and essential repairs is now going to robbed from us and the directors will be left with critical health and safety issues we cannot afford to address. Furious.

 If you don't then how do you go about getting exemption.


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## T McGibney (10 Apr 2014)

lantus said:


> We have just been advised that we must pay this at
> the rate of 12.5% on any money we don't spend at the end of the year as any surplus will be classed as profit according to revenue.



Do you mind me asking - who advised you of this?


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## lantus (10 Apr 2014)

T McGibney said:


> Do you mind me asking - who advised you of this?



 our appointed accountant who claims to be an expert at CT1 forms and management companies.


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## Nige (10 Apr 2014)

fire your accountant.

If you go onto www.revenue.ie and search for "trade associations" the second result gives  you a document about mutual trading (which is what property management companies are normally doing) and how they are not subject to tax on their surplus (but are on their interest income).


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## lantus (10 Apr 2014)

that's superb Nige, looks to be exactly what we need and applies to us. Will get onto the local tax office now. How is it award winning accountants don't know this stuff and I need to resolve it myself? (with your help!)

 cheers all and any other experiences, advice or comments please share.


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## Joe_90 (10 Apr 2014)

lantus said:


> award winning accountants



I've never heard of awards for accountants for giving corporation tax advice. 

 I presume the company accountants are the company auditors too and will need to be removed by the board, with the relevant notification to IAASA.


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## lantus (10 Apr 2014)

apparently they have their best people on it and are now almost nearly sure we wont have to pay corporation tax once they get confirmation back from an expert in revenue.

 sigh......

 really? its all very trying when you have to tell your own appointed expert how to do their job.


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## mandelbrot (11 Apr 2014)

lantus said:


> apparently they have their best people on it and are now almost nearly sure we wont have to pay corporation tax once they get confirmation back from an expert in revenue.
> 
> sigh......
> 
> really? its all very trying when you have to tell your own appointed expert how to do their job.



Ask them what expert in Revenue this particularly taxing (hehe) enquiry necessitated correspondence with and ask to see this correspondence...


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## Joe_90 (11 Apr 2014)

mandelbrot said:


> Ask them what expert in Revenue this particularly *taxing* (hehe) enquiry necessitated correspondence with and ask to see this correspondence...



Practicing for the Open Mic night at the local comedy club again?


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## Joe_90 (11 Apr 2014)

lantus said:


> apparently they have their best people on it and are now *almost nearly sure * we wont have to pay corporation tax once they get confirmation back from an expert in revenue.



Is that the same as being "certain"?


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