Charites are legally entitled to audit exemption on the same basis as a normal, for-profit company – that is, if they qualify as “small” under the Companies Act 2014 limits. However, to obtain and retain a charity tax registration number, Revenue required that the charity have an audit once its turnover exceeded €100,000. A recent amendment to Revenue’s Charities and Sports Bodies On-line Applications for Tax Exemption manual notes that “The latest financial accounts must be signed by two trustees if the annual income is less than €250,000 and must be audited and signed by the body’s external auditor if the annual income is greater than €250,000”. Some charities may need to change their constitution to avail of audit exemption at the higher limit because the €100,000 limit is included in the constitution.
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