Late companies returns net €18.2m

THE Companies Registration Office (CRO) took in €18.2 million in fines from firms that failed to file their annual accounts on time.

The figure in the 2004 Companies Report is down €9.6m on 2003 as more companies filed on time.

However, the number of companies filing an up-to-date set of accounts at the correct date was below the target set by the CRO. Some 70% of the country’s 142,000 firms filed accounts on time, but the percentage of those filing the most recent accounts, (83% of the total) was below the 90% target set by the CRO.

“We achieved our target in respect of the number of companies that filed on time. That indicates the effectiveness of the late filing penalty as regards companies that do file returns. It is not so effective, however, where companies chose not to file at all,” the report said.

In the last five years, the registrar has taken in some €60.3m in fines from companies not filing accounts on time. It expects fines revenue to reduce in the coming years as more companies comply with the law.

The CRO has developed software that allows it to track down companies that persist in filing their returns late, which has resulted in increased compliance.

The Companies Report also show that the number of directors who have been restricted for company law offences has also surged in the past few years. In 2000, 113 people were restricted compared to 487 people last year. The increase is partly due to an rise in the number of cases taken since the establishment of the Office of the Director of Corporate Enforcement (ODCE).

According to the report, investigations by government-appointed authorised officers and High Court inspectors had cost the State a total of €10.9m at the end of last year.

The report also says seven alleged instances of insider dealing by directors of listed companies were reported by the Irish Stock Exchange last year to the ODCE.

No action has been taken in four of the cases, while investigations are continuing in the remainder.