Friday, January 28, 2011
Further to the 2008 travel trade review legislation consultation, the Commission for Aviation Regulation ('CAR') has recently issued a notice which relates to the removal of requirement to produce an audit report. Chartered Accountants Ireland had recommended the requirement for an audit should only apply to larger companies in a representation to CAR which would reduce burden on small businesses, particularly in these difficult economic times.
The recent changes concern sole traders, partnerships and companies as follows:
Sole Traders and Partnerships
For sole traders and partnerships, the requirement to have an audit has been removed by CAR until further notice. Any sole trader or partnership who is affected by this change should have received a direct communication from CAR on January 18th 2011.
Companies
Companies which are incorporated under the Companies Acts 1963 to 2009, where such companies are entitled to avail of audit exemption they are no longer required to have their accounts audited in support of a licence application under the travel trade licensing regime.
Such companies with financial year ends in 2011 should submit the request for audit exemption form to CAR where they wish to avail of this exemption as soon as possible.
This exemption is not available to companies who are submitting accounts with year ends in 2010 in support of their licence application as the audit exemption cannot be availed of in respect of a previous financial year in accordance with Section 32(1)(a) Companies (Amendment)(No. 2) Act 1999.
Companies availing of the audit exemption should submit unaudited accounts (Accountants report, Directors Report, Profit & Loss account, Balance Sheet, Cash Flow statement, Relevant notes to same) to CAR in support of a licence application.