The COVID-19 pandemic has put immense pressure on Irish businesses in meeting regulatory and reporting obligations due to workplace health and safety obligations, staff childcare constraints, and the challenges of social distancing.

We represent 19,000 members working as accountants in business and in practice in Ireland. The regulatory workload of businesses are at least eight weeks behind normal schedules due to the national lockdown earlier this year. Businesses must also devote time to the practical implications of Brexit, particularly in the areas of customs administration and supply chain management.

Practical measures can be put in place by the Government to help Irish businesses cope with regulatory obligations in these difficult times. It is essential that swift and cohesive action is taken now to deal with a myriad of regulatory and reporting deadlines considering recent national Level 3 health and safety restrictions.

Suspend the loss of audit exemption on late CRO returns

The CRO helpfully extended the deadline for the filing of annual company accounts to 31 October. However, due to restrictions in accessing files and records, and adherence to health and safety measures, businesses are working against the clock to file annual returns by the deadline and many companies will not have the annual return filed on time. The most serious penalty for missing the deadline is a loss of audit exemption for two years which impacts small businesses. The filing of annual company returns is an important regulatory obligation but the penalty of losing an audit exemption for two years must be lifted this year given national health and safety obligations.

Tax deadlines

Revenue extended the income tax pay and file deadline for self-assessed taxpayers from 12 November to 10 December. However, the extended deadline does not apply to income taxpayers who do not have the funds to pay their income tax liability this year. This cohort of taxpayer represents the self-employed business owner most impacted by COVID-19 restrictions. Tax returns for these taxpayers must be submitted by 31 October and failure to do so means that a late filing surcharge of five to ten percent of tax due will be applied to the tax liability which they cannot pay in the first instance. We call for the lifting of the late tax return filing surcharge for income taxpayers in financial difficulty.

The wage subsidy schemes have proven vital to the survival of business, but the rules and conditions associated with the schemes are highly complex. Revenue compliance checks are issuing to 66,000 employers who availed of the Temporary Wage Subsidy Scheme. Revenue recently announced a deadline of 31 October for all 66,000 employers who availed of the Temporary Wage Subsidy Scheme to complete and file a reconciliation of subsidies paid to each employee, for each pay slip for each pay date. This again is a considerable work commitment. However small and medium size businesses simply do not have the resources this year to cope with additional tax deadlines.

We as the voice of the Chartered Accountancy profession with 19,000 members working in business and practice in Ireland must highlight the crisis facing business this winter and we request the immediate withdrawal of Government imposed deadlines to allow businesses to safely meet their regulatory obligations. Please lobby on our behalf for fast and effective action.