David Norris (Independent) | Oireachtas source

I move amendment No. 1:

In page 8, between lines 5 and 6, to insert the following:“(f) section 363;”.

The amendment is a proposed amendment to section 3 which concerns repealing elements of prior legislation. I want to add into that to repeal section 363.This small section of the Companies Act 2014 states that if a company is late filing its annual return with the Companies Registration Office, it must pay significant late filing penalties and lose its entitlement to the exemption from full statutory audit for two years. This flies in the face of decisions of the European Court of Justice in a series of rulings. It has laid down the following guideline principle that although the member state in the national court may impose penalties on an individual or company who has not complied with a provision of EEC law, this is subject to the condition that the penalties must not be disproportionate and must not undermine the entitlement to a basic community right.

Section 363 operated to remove a small company's entitlement to the exemption if it fails to file its annual return by the due date. It is the case that legislation cannot be enacted by a member state that, on the one hand, bestows the right to entitlement laid down by an EU directorate, apologies, directive - the Minister will have to excuse me as I have just arrived from Miami so my brain is somewhere out over the Atlantic. They flew me first class. I had a bed and pyjamas. It was wonderful. The Minister will excuse me if my brain is slightly softened by the unaccustomed luxury.