# Advice needed about a Limited Company's unpaid taxes



## D24 (24 Jun 2009)

Hi,

Would really appreciate it if anyone on here could give me any advice on this;

I set up a limited company which was in operation for 8 months (I was contract working and the company i contracted to did not allow sole traders so i had to set up a limited company) My company consisted of myself only (as director), no employees, no overheads, no premises etc, essentially a company on paper only.

I did have an accountant supposed to be looking after my tax matters but basically he did virtually nothing even though i paid him €160 a month while the company was in operation

When I finished the contract i discontinued using the company and went back to a P.A.Y.E job, and was then told i owed the revenue €3.5k in unpaid tax. This payment was defaulted and passed on to the sheriff who is now demanding the €3.5k from me / the company.

While in the P.AY.E. job I wrote to the sheriff offering to pay an amount each month to clear the debt but got no reply. I am now unemployed and on the dole plus I dont own a house or a car and have virtually no possessions the sheriff could take instead of the money.

So basically theres a few things i need to know:


Can the sheriff only accept total payment?
I have no money so will it go to court instead?
Whats the worst case - could i be jailed for non payment?

Thanks for reading all this hope someone could point me in the right direction


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## Brendan Burgess (25 Jun 2009)

*Re: Tax Predicament*

[FONT=&quot]Please  the title of your post in line with the Posting Guidelines. 

Please read the  before posting again on Askaboutmoney.

Any responses to posts with meaningless titles will be removed.

If the title is not edited within a reasonable time, the post will be closed.

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## DBRAN (25 Jun 2009)

*Re: Tax Predicament*

Pm sent to modorator


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## D24 (25 Jun 2009)

Right sorry about that, title has been edited and I've read through the posting guidelines.

Excuse my ignorance im new on this, but I have absolutely no idea what that reply means:



> Pm sent to modorator


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## DBRAN (26 Jun 2009)

Hi D24

Sorry for the criptic comment. I had previously written out a detailed response to your post which was deleted by the moderator (for some reason which i still don't understand).

In any case. You need first of all to check with the revenue to see what the amount is made up of. Make sure that you have filed all the relevant returns and there are no estimates liabilities made by the revenue for unfiled returns. 

If you fail to make a return to the revenue for VAT PAYE CT etc. then the revenue will estimate a figure on your behalf. The figure they pick is simply made up by them and does not usually have any relevance to the actual amount you owe.  There is no appeal against this figure the only way to displace it is to file the correct return. However it can proceed to the sheriff for enforcement and collection if the return is not filed.

I believe the sheriff can arrange for the amount to be paid off in installments but cannot waive any of the taxes, interest or penalties. He can negotiate only on his own fees.

In theory it could go to court if you dont pay but I dont think it is likely for the sum involved. Similarly you should not go to jail.

Your best course of action is to speak personally with the sherrif, explain your situation and see if you can make some reasonable arrangement with him to clear the debt

Hope this helps


DB


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## billythefish (26 Jun 2009)

Unfortunately, I don't know the answers to your queries but give the Sheriff's office a call on (049) 8541266 and quote your warrant number.

Also, get your accountant back on this case. If returns weren't filed for Vat or Paye/Prsi, Revenue will generally raise estimates on these outstanding returns and then demand payment. So, you may find that the amount demanded is made up of estimates and doesn't represent the true liability due.

One thing's for sure, be seen to be proactive about this. The whole "I didn't get a reply" argument won't do you any favours. Also, interest is accruing all the time so it's in your interest to put this to bed asap.

(DBRAN: I see I've overlapped on your reply. Yours wasn't displayed while I was typing mine....)


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## Graham_07 (26 Jun 2009)

DBRAN said:


> I had previously written out a detailed response to your post which was deleted by the moderator (for some reason which i still don't understand).


 



Brendan said:


> [FONT=&quot]Any responses to posts with meaningless titles will be removed.[/FONT]


 
You post may have been before the OP re-titled the thread .


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## jack2009 (26 Jun 2009)

As already suggested you need to establish what the balance relates to!  Get a statement from the Revenue Commissioner also the correspondence from the Sherriff should give some details.

Cross your fingers that these amount you have been paying relate to estimates.


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## D24 (30 Jun 2009)

Thanks for the reply's guys, some good advice at last!

Im looking around for an accountant that would specialise or have experience dealing with this side of things so hopefully will get this whole mess sorted sooner rather than later.

Thanks again


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## Graham_07 (30 Jun 2009)

D24 said:


> Im looking around for an accountant that would specialise or have experience dealing with this side of things so hopefully will get this whole mess sorted sooner rather than later.


 
Any accountant in practice would be well conversent with these issues. No speciality is required.


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## billythefish (30 Jun 2009)

D24 said:


> Thanks for the reply's guys, some good advice at last!
> 
> Im looking around for an accountant that would specialise or have experience dealing with this side of things so hopefully will get this whole mess sorted sooner rather than later.
> 
> Thanks again



Why not go to the accountant who was supposed to have looked after this for you in the first place. Haven't you paid them fees already? Why pay again?...


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## D24 (30 Jun 2009)

Well i paid him monthly while the company was in operation, but that was about a year or more ago so if i were to approach him now to do this id have to pay again. Besides, he did a crap job of it so i dont want him.

I'll hopefully be paying an accountant a once off fee to sort this, so i dont mind once it finally gets 'put to bed' as another poster put it


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## contemporary (1 Jul 2009)

D24 said:


> . I am now unemployed and on the dole plus I dont own a house or a car and have virtually no possessions the sheriff could take instead of the money.
> 
> So basically theres a few things i need to know:
> 
> ...



The sheriff can only act against the assets of the company, so even if you had a car, house, 20p in your pocket he cant come and take anything that doesnt belong to the company, but you do need to get this sorted asap.


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## D24 (3 Jul 2009)

> The sheriff can only act against the assets of the company, so even if you had a car, house, 20p in your pocket he cant come and take anything that doesnt belong to the company/QUOTE]
> 
> Well I wasn't aware of that now, I was under the impression that even though its 'the company' that owes the unpaid tax I thought I could still be held responsible personally as i was director of the company?
> 
> So what would happen if i just flat out refused to pay the unpaid tax, I don't mean that in an arrogant way, just simply not having the money to pay and telling the revenue & sheriff just that? Would it just be along the lines of the company being blacklisted, struck off or whatever it is they do, and me being banned from  ever having a company / being a director?


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## DBRAN (3 Jul 2009)

D24 said:


> > The sheriff can only act against the assets of the company, so even if you had a car, house, 20p in your pocket he cant come and take anything that doesnt belong to the company/QUOTE]
> >
> > Well I wasn't aware of that now, I was under the impression that even though its 'the company' that owes the unpaid tax I thought I could still be held responsible personally as i was director of the company?
> >
> ...


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