Description
The Companies Act states that if an Irish Company does not have at least one company director who is resident in the European Economic Area (EEA), a Bond must be taken out. It is important to note that this requirement pertains to residency and not citizenship. A company director who holds an EEA passport but resides outside of the EEA would also require a bond.
A Revenue Bond insures the company for a sum of €25,000 and its purpose is to cover the following:
- Any fine imposed on the Company in respect of offences under the Companies Act 2014 e.g. failure to file Annual Returns and Audited Accounts on time.
- A fine for failure to supply certain information to the Revenue Commissioners – mainly information required on the Form CRO 11F.
- Any penalty which the company has been held liable to pay under S1071 or S1073 of the Taxes Consolidation Act 1997.
- Any expenses incurred in recovering the fines and penalties mentioned above
The Non-EEA Resident Bond covers a period of 2 years and must be put in place at the incorporation stage or upon the removal of the EEA resident director of the company. The Bond acts like an insurance policy to cover the government for unpaid taxes or fines if the company leaves the jurisdiction.
- DESCRIPTION
The Companies Act states that if an Irish Company does not have at least one company director who is resident in the European Economic Area (EEA), a Bond must be taken out. It is important to note that this requirement pertains to residency and not citizenship. A company director who holds an EEA passport but resides outside of the EEA would also require a bond.
A Revenue Bond insures the company for a sum of €25,000 and its purpose is to cover the following:
- Any fine imposed on the Company in respect of offences under the Companies Act 2014 e.g. failure to file Annual Returns and Audited Accounts on time.
- A fine for failure to supply certain information to the Revenue Commissioners – mainly information required on the Form CRO 11F.
- Any penalty which the company has been held liable to pay under S1071 or S1073 of the Taxes Consolidation Act 1997.
- Any expenses incurred in recovering the fines and penalties mentioned above
The Non-EEA Resident Bond covers a period of 2 years and must be put in place at the incorporation stage or upon the removal of the EEA resident director of the company. The Bond acts like an insurance policy to cover the government for unpaid taxes or fines if the company leaves the jurisdiction.
