We are seeing a rise in the number of penalties issued by the IRB for various non-compliances by dormant companies. Directors of such companies should realize that though the companies are inactive with no business operations, the IRB now requires dormant companies to file annual corporate tax returns Form e-C and file the annual Employer’s return Form e-E. Audited accounts of these dormant companies are still required to be done. Dormant companies however do not need to file their tax estimates because they have not commenced their operations, and if they are SMEs, are exempted from filing tax estimates for their first two years of assessment of operations.
