I am advised by Revenue that its clear preference is to engage with viable taxpayers experiencing temporary cash flow difficulties rather than deploying debt collection/enforcement sanctions. Revenue's commitment in this regard is clearly demonstrated by the fact that it currently supports over 8,000 taxpayers in respect of almost €100m of debt with phased payment arrangements.
However, where an acceptable solution can not be agreed or where the taxpayer does not engage with the issue in an open and realistic manner then Revenue has no alternative but to protect the Exchequer by using its debt collection/enforcement options. In most cases the enforcement option is likely to be either the sheriff or solicitor and once a case is referred, the collection agent is fully empowered to agree appropriate phased payment arrangements.
The case in question has a very poor tax compliance record and has consistently failed to file Returns or pay tax liabilities on a timely basis. This has resulted in both declared and estimated liabilities being referred to the sheriff for collection. At this point it is not possible for Revenue to agree any arrangement with the business as there are still a number of tax Returns outstanding and as a consequence the total liability can not be fully quantified.
If the business now wishes to properly engage with Revenue it should immediately file all of the outstanding Returns, including in respect of any periods that are already with the sheriff on an estimated basis. Once the outstanding Returns are submitted and the liability is quantified, Revenue will be in a position to discuss the issue with the business and/or its tax advisor. The business should provide clear proposals on how it intends to meet the liabilities in advance of any such discussions.
Any phased arrangement will include statutory interest on which Revenue has no discretion and will require clear commitments from the business in regard to the timely payment of current taxes. Any outstanding charges to the sheriff will also have to be discharged by the business.
