Dáil Éireann Debate, Tuesday - 10 May 2022
276. Deputy Pearse Doherty asked the Minister for Finance the amount of debt warehoused by high wealth individuals through the debt warehousing scheme disaggregated by tax head; and the number of high-wealth individuals that have warehoused debt through the scheme. [23127/22]
View answerThe Debt Warehousing Scheme has offered valuable and practical liquidity support to individuals and businesses, assisting them with their cash-flow during the difficult trading periods associated with the COVID-19 pandemic. The objective of the scheme is to support the long-term economic viability and survival of the participants/businesses concerned. The Deputy will be aware that under the scheme, participants can temporarily ‘park’ certain tax debts on an interest free basis until the end of 2022, 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.
I am advised by Revenue that its Large Cases - High Wealth Individuals Division deals with the management and development of service, compliance and audit functions for those individuals in the State with net assets of €20m or more. Where individuals managed by that Division were adversely impacted by COVID-19, they could apply for access to the Debt Warehousing Scheme. In order to qualify for the scheme in respect of Income Tax, the taxpayer’s total income for 2020 and 2021 (as applicable) had to be at least 25% less than total income for 2019. Each taxpayer was required to make a declaration to Revenue to confirm that he or she met the criteria to avail of the scheme. Of the 94,000 customers availing of the Debt Warehousing Scheme, just 49 are high wealth individuals.
As at 30 April 2022, the total debt warehoused for these high wealth individuals is as follows:
|
Large Cases – High Wealth Individuals Division |
€ |
|
Income Tax * |
3,882,918 |
|
Employers PAYE |
1,490,855 |
|
VAT |
1,366,380 |
|
Temporary Wage Subsidy Scheme |
8,674 |
|
Total Warehoused |
6,748,827 |
*Relates to liabilities which fell due on 31 October 2020 and on 31 October 2021
Further information on the Debt Warehousing Scheme is available on the Revenue website.
