Dáil Éireann Debate, Thursday - 28 April 2022
28. Deputy Michael Creed asked the Minister for Finance the quantum of taxes, by category, that have been warehoused arising from the provisions in the emergency legislation dealing with Covid-19; and if he will make a statement on the matter. [14985/22]
View answerThe Debt Warehousing Scheme was introduced to provide a vital liquidity support to businesses suffering a downturn due to the Covid-19 pandemic. Under the scheme, businesses can temporarily ‘park’ certain tax debts on an interest free basis until the end of this year (or until 30 April 2023 for businesses most impacted by the most recent public health restrictions and who are eligible for certain Covid-19 support schemes).
The scheme is automatically available to businesses and individuals that are managed by Revenue’s Business and Personal Divisions. Revenue’s Business Division manages enterprises with an annual turnover less than €3 million, which accounts for the majority of business taxpayers. Revenue’s Personal Division deals with all business entities with no trade or professional income such as trusts, charities, sporting bodies.
The scheme is available by agreement to larger businesses managed by Revenue’s Large Corporates and Medium Enterprises Divisions, where such businesses were adversely impacted by COVID-19. Revenue’s Medium Enterprises Division deals with businesses with an annual Irish turnover of more than €3 million (but less than €190 million) as well as the subsidiaries/parents of such companies. Large Corporates Division deals with the largest companies with an annual Irish turnover of more than €190 million per annum.
I am advised by Revenue that the total debt eligible for the Debt Warehousing Scheme since its introduction is €31 billion, and 250,000 businesses were eligible to avail of the scheme. However, 91% of that debt has been paid, with the balance of €2.9 billion warehoused at the end of March 2022 in respect of almost 94,000 businesses.
This declared warehoused debt by Revenue Division as of 31 March 2022 is as follows:
|
Division |
€m |
|
Business |
1,467 |
|
Medium Enterprises |
1,011 |
|
Large Corporates |
377 |
|
Personal |
24 |
|
Large Cases – High Wealth Individuals |
6 |
|
Total |
2,885 |
The breakdown of warehoused debt by taxhead as of 31 March 2022 is as follows:
|
Taxheads |
€m |
|
VAT |
1,361 |
|
Employers PAYE |
1,385 |
|
Income Tax |
57 |
|
TWSS |
55 |
|
EWSS |
27 |
|
Total |
2,885 |
The breakdown of warehoused debt by Sector as of 31 March 2022 is as follows:
|
Sectors |
Customer Count |
€m |
% of Total Debt |
|
Wholesale and retail |
14,411 |
652 |
23% |
|
Accommodation and food services |
9,894 |
427 |
15% |
|
Construction |
15,520 |
339 |
12% |
|
Professional, scientific and technical |
10,526 |
301 |
10% |
|
Transportation and storage |
3,776 |
193 |
7% |
|
Administrative and support service activities |
3,992 |
193 |
7% |
|
Information and communication |
3,738 |
191 |
7% |
|
Manufacturing |
4,989 |
170 |
6% |
|
Arts, entertainment and recreation |
2,355 |
76 |
3% |
|
Real estate activities |
3,139 |
70 |
2% |
|
Human health and social work |
3,759 |
69 |
2% |
|
Financial and insurance |
1,126 |
57 |
2% |
|
Other service activities |
5,846 |
55 |
2% |
|
Agriculture, forestry and fishing |
5,225 |
27 |
1% |
|
Education |
2,960 |
26 |
1% |
|
Water supply: sewerage |
343 |
11 |
0% |
|
Electricity, gas, steam and air conditioning supply |
79 |
9 |
0% |
|
All other Sectors/Unknown |
1,677 |
9 |
0% |
|
Public administration |
274 |
5 |
0% |
|
Mining and quarrying |
114 |
5 |
0% |
|
Activities of households as employers |
206 |
0 |
0% |
|
Activities of extraterritorial organisations and bodies |
11 |
0 |
0% |
|
Total |
93,960 |
2,885 |
100% |
Revenue recently published updated statistics on the Debt Warehousing Scheme and this report, as well as further information on the Scheme, is available on the Revenue website.
