I understand from the Revenue Commissioners they fully agree with the views expressed by the President of the High Court about the need for early action by Revenue in cases where individuals or companies default on their tax obligations.
Where companies experience cash-flow difficulties they can quickly run up a sizeable arrear of tax. I understand that, unless specific arrangements are made with Revenue to secure payment, Revenue will move speedily to take enforcement action.
However, the need for speedy action in such cases has to be balanced against the problems that can arise for genuine businesses. Revenue have indicated that, once they are satisfied that a company is capable of paying arrears of tax as well as current taxes as they fall due, they are prepared to consider proposals to discharge the arrears of tax by the company to survive. Such instalments carry interest at a rate significantly higher than commercial interest rates.
In the normal course efforts to secure payments in cases in default will have been made through standard enforcement measures, such as the referral of the case to the Revenue Sheriff, before liquidation is considered.
In the particular case before the court the appointment of a liquidator by the court was sought because it was felt that the particular circumstances of the case justified such action. I am satisfied from my discussions with the Revenue Commissioners that the overall approach they are following in regard to tax collection and enforcement is a balanced and effective one, and has indeed proved highly successful. Procedures are of course kept under review.