Ivana Bacik (Dublin Bay South, Labour)
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151. To ask the Minister for Enterprise, Trade and Employment when section 22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 will be commenced; whether removal of the automatic loss of the audit exemption for the first instance of late filing of the annual return at the CRO will be in place before the next annual return; and if he will make a statement on the matter. [22798/25]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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Section 22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 provides for a change to the current audit exemption regime, whereby small and micro sized companies will not, in future, automatically lose the privilege of audit exemption on a first occasion, in a five year period, of late filing of an annual return with the Companies Registration Office (CRO). This amended approach will ease the burden on small and micro sized companies and is considered appropriate, bearing in mind the importance of timely filing of annual returns with the CRO and having a proportionate penalty regime for late filing.

Work to progress the required changes to the CRO IT system has been prioritised and is expected to be completed by end May, with the relevant provision to be commenced as soon as possible thereafter.

Every company has its own annual return date and must file an annual return within 56 days of this date. As a result, the filing of annual returns happens on an ongoing basis, albeit with a significant peak occurring during November each year.

I wish to emphasise that there remains a statutory obligation under the Companies Act on companies to file an annual return with the CRO and late filing will continue to incur late filing fees.