Dáil Éireann Debate, Tuesday - 5 October 2021
157. Deputy Richard Bruton asked the Minister for Finance the terms on which warehoused taxes are being held by the Revenue Commissioners; the obligations that enterprises carry in respect of these sums of money; and if any phasing of obligations is planned to assist enterprises struggling to reopen. [47524/21]
View answerThe Debt Warehousing Scheme remains available to support businesses that are experiencing tax payment difficulties arising from the COVID-19 pandemic. The scheme, which has to date provided €2.6 billion in liquidity to approximately 95,000 businesses, applies to VAT debts, PAYE (Employer) debts, certain self-assessed income tax debts and overpayments of both the Temporary Wage Subsidy Scheme (TWSS) and the Employment Wage Subsidy Scheme (EWSS). Access to the scheme is automatic for SMEs managed by Revenue’s Business and Personal Divisions and by agreement with larger businesses managed by Revenue’s Large Cases and Medium Enterprise Divisions. To qualify for debt warehousing, businesses must continue to file all tax returns, even though the liability cannot be paid.
For eligible businesses, Period 1, the period during which tax debts may be warehoused, has been extended to 31st December 2021, and tax debts can then be ‘parked’ interest-free until 31st December 2022. At that point the warehoused debt may be paid in full without incurring an interest charge or can be paid through a tailored phased payment arrangement starting in 2023 at a significantly reduced interest rate of 3% per annum. This compares to the standard rate of 8% or 10% per annum that would otherwise apply to such debts. Any tailored phased payment arrangement will take account of the taxpayer’s particular financial circumstances and can be extended over a longer timeframe as required provided current liabilities continue to be paid as they fall due.
I am aware that Revenue maintains regular contact with taxpayers and businesses availing of debt warehousing to ensure they appreciate the importance of continuing to file returns, to clarify any queries they may have about their obligations to repay the liabilities in due course and of the importance of paying current taxes. Revenue has assured me that it will continue to engage in this manner and that a flexible approach will be adopted to the repayment of warehoused debts on a case by case basis. Further information on the Debt Warehousing Scheme is available on the Revenue website which may be of assistance to the Deputy.
