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Tax Code

Dáil Éireann Debate, Wednesday - 23 January 2013

Wednesday, 23 January 2013

Questions (76)

Brendan Griffin

Question:

76. Deputy Brendan Griffin asked the Minister for Finance if struggling businesses who have settled with the Revenue Commissioners for penalties and interest and are paying back by installment will be accommodated in any way at times of the year that their turnover is reduced; his views on whether it is in the interest of the Revenue Commissioners and the State not to apply undue pressure that would cause such businesses to fail; if there is a process that a business person under pressure can engage in if they is finding the repayment schedule unworkable; and if he will make a statement on the matter. [3292/13]

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Written answers

Revenue has a strong focus on making sure that every individual and business complies with the responsibility to pay the right amount of tax or duty including interest and penalties, which are due, in full and on time. 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 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.

It must be remembered that the granting of an instalment arrangement is not something to which a taxpayer is entitled as a matter of right, and accordingly, it is very important that those businesses that have agreed an instalment plan with Revenue organise their financial affairs in such a fashion as to ensure that the terms of the agreement are honoured as agreed. However, in circumstances where a business or taxpayer finds the terms of the original phased payment agreement unsustainable due to an unexpected reduction in turnover then the business or taxpayer should make immediate contact with Revenue and outline alternative proposals. Provided that the underlying viability of the business is confirmed, which includes in particular capacity to pay current taxes, and where there is open and honest engagement by the business including a clear commitment to restore timely payment compliance within realistic timeframes, then Revenue may agree to restructure the original phased payment arrangement.

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. If the Deputy has a particular case in mind, I would advise the person or business to contact Revenue immediately.

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