One of the primary functions of Revenue is the collection of tax and ensuring that all taxpayers pay the correct amounts due in a timely manner.
As the Deputy is aware, the 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 who qualified for the warehoused extension). However, to remain eligible for the Debt Warehousing Scheme, in addition to filing all returns for the warehouse periods, current liabilities must also be filed and paid on time.
Earlier this year, Revenue commenced a phased return to standard debt collection for non-warehoused debt i.e. current liabilities, which had been partially suspended since the start of the pandemic in March 2020. As part of Revenue’s standard debt collection procedure, where current taxes become overdue, a request for payment will issue with details of the tax(es) due, requesting payment within a set timeframe. The request for payment outlines the consequences of continued non-payment and affords the taxpayer up to 10 days to engage. In the absence of customer engagement, a final demand issues allowing another 7 days for the customer to engage. Where there is continued lack of engagement from the customer in response to these notices, the case is escalated for further action.
Generally, on receipt of a 7-day final demand, the majority of taxpayers take action to resolve their payment difficulty. Revenue encourages taxpayers to engage early when payment difficulties arise, particularly during the current energy costs crisis. Revenue has a strong track record of successfully working with individuals and businesses to resolve their payment difficulties. In most cases, a mutually satisfactory solution is found without resorting to enforcement action. For example, taxpayers can enter into a Phased Payment Arrangement to pay off their debt in instalments over a period of time.
The important message for taxpayers who receive these notices is to engage with Revenue at the earliest opportunity so that a mutually acceptable solution can be found to enable them work through their difficulties. I am assured that Revenue appreciates the challenge for businesses in paying their outstanding liabilities in a difficult economic and financial climate and Revenue is committed to finding solutions which are flexible, and which take account of the financial circumstances of the business concerned.
