Losing Your Audit Exemption: What happens if you miss your CRO Filing Deadline?

Small and micro limited companies in Ireland are generally not required to have their annual financial statements audited, as long as they submit their CRO Annual Returns on time. From 16 July 2025, they can miss one Annual Return Date (ARD) in any rolling five-year period without losing their audit exemption. However, if you miss two ARDs within five years, you automatically lose your audit exemption for the next two financial years. A District Court application is still possible in certain cases, but the rules have tightened.

What Happens When You Miss Your ARD?

Under the updated Companies Act rules, for your first late filing in a five-year period, you keep your audit exemption. But with a second late filing in a five-year period, you then lose your audit exemption for the next two financial years. Late filings before 16 July 2025 do not count. The five-year clock starts fresh from that date.

This is a major change from the old regime, where any late filing meant an automatic loss of audit exemption.

Who Qualifies for the “One Late Filing Allowed” Rule?

Only standalone companies that meet the statutory definition of small or micro which are:

1. Small company thresholds (meet 2 of 3): 

• Turnover ≤ €15m  
• Balance sheet total ≤ €7.5m  
• ≤ 50 employees  

• Turnover ≤ €900k  
• Balance sheet total ≤ €450k  
• ≤10 employees  

Companies are not eligible if they are in a group or if they do not meet small/micro thresholds. These companies still face automatic loss of audit exemption if they file late.

Can you still apply to the district court?

Yes. The Section 343 District Court route still exists. A company may apply to the court to request an extension of its ARD if there were exceptional and genuine reasons for the late filing, the delay was outside the company’s control and it was not simply an oversight or administrative error.

Examples that may be accepted include serious illness, family emergency, unexpected professional incapacity or circumstances that made filing impossible despite reasonable efforts. The court then can extend the ARD and allow the return to be filed by the new date.  

Professional advice is essential and the timing is critical.

 

Last updated 29 Mar 2017 | First published 29 Mar 2017

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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