Defination of a "close company" for taxation purpo

[Rujib]

Defination of a "close company" for taxation purpo

Hi,

Can anyone help me with the definition of a "close company" for tax purposes.
I am interested, as I am considering getting into a deal with a property developer whose company is described as such in it's annual retrurns to the CRO.
I am just a little concerned as to what that could mean.
The company in question shows a profit of only €31k on a turnover of €4.1 million and has also claimed exemption from the requirement to return audited accounts.

Rujib.

 

[Tommy]

Re: Defination of a "close company" for taxation p

A close company is a company whose shareholding (or a controlling share thereof) is concentrated within a group of connected individuals. It is a technical term used in the tax code basically to categorise family companies and others of similar nature.

I cant see how this company claimed audit exemption if their turnover was approx 4 million - unless of course it isnt an Irish company. Audit exemption is only available to companies with turnover of less than €1.5m. For periods beginning after June 2004, the turnover limit was €317K.