A policy change being introduced by the Companies Registration Office (CRO) will put increased pressure on companies and accountancy firms to file early accounts.
As part of its policy of cleaning out the register of companies and improving its quality, the CRO has been putting pressure on secretarial companies through the strict implementation of rules on filing returns.
Last year 90 per cent of registered companies filed current returns, a huge improvement over a few years ago, when the figure was about 45 per cent.
Now the CRO is moving attention to the quality of the documents filed. In an advertisement published in the national press on Wednesday, the office warned that prosecutions against directors and companies are more likely to involve companies that have filed late returns in the past.
The CRO also said it is more likely to select companies that have in the past filed the oldest allowable accounts with their annual returns.
Under law, a registered company is obliged to file a return every year. A set of accounts must be attached and the rules provide that they must not be more than eleven months older than the date the return is filed.
"Some are stretching the leniency of the system to the limit," said the Registrar of Companies, Mr Paul Farrell. "This year when it comes to enforcement and other measures, we are going to start with the companies with the oldest accounts."
The policy comes as the office is stepping up its enforcement of the law. Last year 60 per cent of companies were late in filing to their returns.
Because of the large numbers involved, it is not feasible to prosecute all infringements. "So we are going to start with the prosecution of those who have been stretching the system the most," Mr Farrell said.
The CRO has a schedule of court dates booked this year for the prosecution of directors and companies and is expecting to bring more such prosecutions this year than it did last year.
A measure to be introduced shortly will allow for increased fees for the filing of late returns, with the fee increasing in size as time passes. The amounts involved have yet to be decided. Currently the fee for the late filing of documents is £5, irrespective of how late the filing is.
