The Revenue Commissioners are charged with responsibility for the timely collection and recovery of a range of taxes and duties due to the Exchequer. Revenue has a clear focus on making sure that every person and business complies with the requirement to file the relevant returns and to pay the appropriate tax or duty on a timely basis. That is an appropriate and correct focus for Revenue and one that I fully endorse. Delays in the collection of tax revenues properly due, adds to the level of Government borrowing and public debt interest and confers an unfair competitive advantage on non-compliant businesses.
I am advised by Revenue that tax clearance certificates automatically issue to individuals or businesses that are tax compliant. In circumstances where there are compliance problems in regard to the timely payment of tax then tax clearance certificates are not automatically renewed. In cases where payment of a tax debt in a single lump sum is demonstrably not possible for an individual or business and a tax clearance certificate is required, then the individual or business should contact Revenue and negotiate a mutually acceptable phased payment arrangement. A phased payment arrangement is a concession and must be fully justified to Revenue with reference to the specific circumstances of the individual taxpayer or business. In such phased payment situations where tax clearance is required, a down payment of at least 40% of the debt is normally requested. However, I am informed by Revenue that this level of down payment can be reduced on a case by case basis depending on the particular circumstances of the case and the willingness of the taxpayer or business to engage with Revenue to satisfactorily address the outstanding tax debt and to restore timely compliance as quickly as possible.
I know that Revenue is conscious of the difficult economic and financial climate that prevails and how this can pose challenges for businesses and individuals in being timely compliant. Revenue has responded to the difficult environment by encouraging businesses experiencing particular payment difficulties to work proactively with them when such difficulties start to arise in order to find an agreed way through those difficulties and quickly restore voluntary timely compliance. Revenue has, for example, published material for businesses experiencing tax payment difficulties on its website at www.revenue.ie. I commend Revenue for the work that it has done in that regard and in the practical support and assistance it is providing to viable businesses. I am aware that tax practitioners and representative bodies have recognised Revenue’s efforts in this regard also.
