Hi, bit of advice needed. We have a start up co which we thought would qualify for the corporation tax 3 year exemption scheme that revenue have. We meet all the criteria except that two days before Christmas 2008 our first clients authorised the advance payment for work beginning in Jan 2009. This happened because of bank holidays and slow down over the Christmas. As far as I can see we did not commence trade until 2009, which is what the criteria says. No wages were paid until end Jan 2009. A vat return was made for that payment under Nov/dec 2008 as we are on a cash receipts basis and the money came in in dec.
Initially Revenue were saying all was ok and that we qualified for the scheme. I asked for a written confirmation of that as I did not want them turning around in 3 years telling us something different. I have just been told that they have had a meeting and we are now not eligible for the scheme as we traded in 2008!
At this point we are wondering if we should disband this Co and start a new one so as to avail of the scheme? Our tax liability for last year was nil and this year is negligible. But next year there is a potential for a decent return, all going well.
Initially Revenue were saying all was ok and that we qualified for the scheme. I asked for a written confirmation of that as I did not want them turning around in 3 years telling us something different. I have just been told that they have had a meeting and we are now not eligible for the scheme as we traded in 2008!
At this point we are wondering if we should disband this Co and start a new one so as to avail of the scheme? Our tax liability for last year was nil and this year is negligible. But next year there is a potential for a decent return, all going well.