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Revenue to enforce collection of €100m in warehoused tax debt after support scheme ends

The relevant businesses had until 1 May of this year to “engage meaningfully” with Revenue.

REVENUE WILL NOW pursue €100m in unpaid taxes that had been part of a Government scheme which allowed struggling businesses to restructure tax debt payments. 

The Tax Debt Warehousing Scheme that was introduced for businesses following the pandemic. It was intended to help businesses experiencing cash flow problems, by allowing them to defer paying some tax liabilities until they were in a position to deal with the debt.

Finance Minister Michael McGrath announced today that the scheme had come to an end and that 93% of the €3.2 billion peak warehouse debt has now been paid, secured under phased payment arrangement or under final negotiations/approval. 

The remaining €100m that remains will now be subject to the normal procedures for tax collection. 

The relevant businesses had until 1 May of this year to “engage meaningfully” with Revenue and discuss arrangements to pay their warehoused tax liabilities, a Government statement said.

A demand notice was then issued on 8 May to the 11,724 customers who had not engaged with Revenue by that date, offering one final opportunity to address their warehoused debt and continue to avail of the 0% interest rate on that debt.  

A total of 7,042 businesses did not engage with Revenue following this notice and so their debt is now subject to standard collection and enforcement at the standard interest rates of 8% and 10%.

McGrath thanked Revenue for its management of the now concluded scheme, which he said supported businesses in “an unprecedented and exceptionally difficult trading environment” and helping to keep some businesses afloat.

“I also wish to acknowledge the significant levels of engagement to date by taxpayers and their agents in agreeing realistic payment plans tailored to their particular circumstances. As a result of their engagement, the amount of warehoused tax debt has reduced by a substantial €284 million since January of this year.”

He said that people who have agreed phased payment agreements (PPAs) should not that the 0% rate only applies if they file their taxes on time and complete their monthly payments.

He said that businesses experiencing cashflow problems that impact their tax payments should contact Revenue as soon as they can.

“Revenue will work with viable businesses in a fair and pragmatic way to agree mutually acceptable payment solutions,” he said.

“On a case-by-case basis this may include options such as a payment deferral or a payment break, rather than deploying debt collection and enforcement options.”

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