Patrick Costello (Dublin South Central, Green Party)
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60. To ask the Minister for Enterprise, Trade and Employment if he will give consideration to reducing late filing penalties and-or the introduction of a discretion for the application of penalties by the Companies Registration Office in cases in which an error such as a failed filing fee payment results in a late return as these penalties and requirement for full audited accounts place a significant burden on micro-SMEs; and if he will make a statement on the matter. [27554/22]

Robert Troy (Longford-Westmeath, Fianna Fail)
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In recognition of the burdens on small business, company law was amended in 1999 to provide audit exemption for those companies who meet their filing obligations. These long-standing provisions have been, and continue to be, of significant benefit to compliant companies. There is a considerable incentive on companies and their advisers to ensure timely filing of annual returns, thereby safeguarding the audit exemption and avoiding late filing penalties and possible prosecution.

Against this background, there has been a very significant increase in the compliance rate for the filing of annual returns, moving from a widespread culture of non-compliance up to the 1990s to a situation, in recent years, where in the region of 90-95% of companies meet their filing obligations on time.

The question has been raised about the potentially disproportionate effect that the loss of audit exemption may have, particularly in relation to SMEs, as a consequence of late filing (due to the costs associated with providing two years of audited financial statements).

My Department keeps company law under review on an ongoing basis and preparations are being made to update the Companies Act through a Companies (Miscellaneous Provisions) Bill. My officials are considering provisions in a number of areas including what changes might be appropriate to the current regime to ensure that the consequences of late filing do not unduly penalise small business while also maintaining the incentive to file annual returns in a timely manner.