Dissolved IT Company

Hi Folks,

I have a friend who was working as IT Contractor in Dublin for nearly two years.
He left the country and now lives full time in Austrailia. The company has been dissolved. My question is what happens to any outstanding tax liabilities as he does not have the means to meet these. Are the liabilities dissolved with the company. The companies registration office dissolve the company. Are there any other implications going forward. I can't see my friend returning to Ireland.

A company will not be dissolved by the Companies Office until it receives a Clearance letter from Revenue stating that taxes are paid and up to date and that they have no objection to it being struck off.

Is your friend sure the company is properly dissolved? taxes don't go away and accumulate daily interest

If there are/were outstanding tax bills, it would have been difficult or impossible to have the company voluntarily wound up as this requires Revenue's agreement in each case. If the company was dissolved by the CRO because of late- or non-filing of returns, then the company's shareholders are personally liable for company debts

I think in this case the company would be "struck off" as opposed to a voluntary dissolution. As other posters have said, In order to apply for a voluntary dissolution the company must submit a letter from Revenue stating that its tax affairs are up to date. They are very strict in issuing these letters.


In the case where a company is struck off by CRO for failure to file returns, etc., whatever debts are due to the Revenue Commissioners are still payable and will only be accumulating interest and penalties whilst outstanding.

thanks for the replies

Considering he is now in Oz but would like to get this cleared up. What is the next step. He obviously has not declared accounts for any year. What would the revenue do in this? If it an estimation what would they base their figures on? When you say penalties are accumulating how is all this worked. Do they have access to the listed business for the period of operation.

Thanks

you need to tell your friend to go to a tax adviser.

there's too many issues here. From what you're saying he's not made any Revenue returns for a number of years across a number of differnt tax heads. We wouldn't be able to say off hand when those penalties are due and when interest arises as we don't have his date of commencement or his company year end.

Revenue will come down heavily on him but an unprompted qualifying disclosure may mitigate some penalties in the long run. this is what you need to speak to an adviser about.

Revenue have access to all information from a number of different areas and will not stop to think about getting a High Court Order to examine not only his records, but third party records, banks, suppliers etc.

Regarding strike offs in the Companies Office these are based on the sworn Declarations of Directors which state that all liabilities have been discharged -if there are creditors and they find out about it the process wil be stopped and thematter may be reparted to the Director of Corporate Enforcement -thre may be penalties and disqualifications