Dáil Éireann debate -
Tuesday, 6 Apr 1993

Vol. 429 No. 3

Written Answers. - Small Family Businesses.

Jim O'Keeffe

Question:

82 Mr. J. O'Keeffe asked the Minister for Finance if his attention has been drawn to the difficulties confronting those involved in running small family businesses which give good employment in thousands of premises throughout the country and in particular to the fact that many of them have severe cash flow problems because of loan repayments, VAT, PRSI and other tax demands; and if, in the circumstances, he will make an approach to the Revenue Commissioners to ensure that reasonable time is given without penalty or interest to those who are making a reasonable effort to keep up with such demands.

Minister for Finance (Mr. B. Ahern)

While I am keenly aware of the difficult economic conditions that prevail at present, it would not be appropriate for me to intervene in the exercise by the Revenue Commissioners of their statutory function of securing prompt payment of all taxes due for the benefit of the Exchequer.

I am nevertheless informed by the commissioners that while the majority of taxpayers now lodge their returns and pay over moneys due on time, some latitude is extended to those taxpayers who may experience temporary difficulty in complying with their statutory obligations and who make their situation known at an early stage.

In extending any such latitude, the commissioners must distinguish between those taxpayers who are in genuine difficulty and those who simply refuse to comply with their obligations. It must be evident that the commissioners are not seen to allow the non-complying public an unfair commercial advantage over their complying competitors.

With regard to the commissioners' charging of interest for late payment of amounts due, it is normal practice before interest is demanded, to have cases examined carefully to ensure that no factors are present which cast doubt on the legitimacy of the interest charge. Interest, no more than tax on which it is based, is not a discretionary imposition.