Readers will be aware that from 1 January 2010, Phase 2 of mandatory eFiling commenced for a company which is required under any provision of the Companies Acts to append audited accounts to its annual return. Revenue has issued eBrief No. 03/10 “clarifying” the companies within Phase 2 of mandatory eFiling.

Government Departments/Offices and companies whose tax affairs were dealt with by Large Cases Division came within Phase 1 and were subject to mandatory eFiling since 1 January 2009. Beyond that, apparently, Revenue's intention was that “large companies” which are obliged to file audited accounts with the Companies Registration Office (CRO) would pay and file electronically from 1 January 2010. The CRO audit exemption criteria were considered the primary factors in distinguishing between larger companies and other businesses.

Considering the difficulties encountered in identifying companies which did not qualify for the CRO audit exemption and satisfied the large companies' criteria, Revenue has confirmed the base for Phase 2:

• Turnover greater than €7.3 million; and
• Number of employees greater than 50.

As previously reported in eNews, Revenue has contacted all companies which come within Phase 2 of mandatory eFiling. Companies which submit audited accounts to the CRO but do not meet the “large companies” criteria (turnover and employee numbers) are not caught within mandatory eFiling.

Revenue's repeated mentions of a “public consultation process” in the context of mandatory e-filing should not be interpreted to mean acquiescence on the part of the representative bodies to mandatory e-filing. Such “consultation” as did take place did not typically involve Revenue's taking any heed of the points made to them. The need for this particular clarification in eBrief 03/10 was communicated in writing almost a year-and-a-half ago by CCAB-I.