Vol. 547 No. 3
198 Mr. Haughey asked the Minister for Finance the position regarding the payment of preliminary tax by sole traders in the shorter tax year; if his attention has been drawn to the difficulties this will cause for some businesses having regard to cash flow situations; and if he will make a statement on the matter. [3250/02]
The due date for payment of preliminary tax in respect of the "short" tax year, 6 April 2001 to 31 December 2001, was 31 October 2001. The tax return in relation to that tax year, together with the balance of any tax due, must be submitted not later than 31 October 2002. Any taxpayer who paid insufficient preliminary tax on 31 October 2001 should arrange to pay the outstanding tax liability for this tax year as early as possible in order to minimise possible interest charges.
While the due date for any balance of tax payable will be earlier than heretofore, this is balanced by the smaller payment required in respect of the short tax year and by the fact that preliminary tax is now payable close to the end of the tax year, rather than in mid-year as has been the case up until now. In all the circumstances, I do not consider that the transition to the calendar year has adversely affected cash flow for businesses.
I am advised by the Revenue Commissioners that, as part of their normal arrangements, they would be prepared to discuss an individual case with the taxpayer concerned with a view to overcoming a payment difficulty. In practice this could, for example, be an agreement to pay the liability through an instalment arrangement. It is important to emphasise that a taxpayer with payment difficulties for income tax or any other tax should not ignore demands for payment but should instead make timely contact with Revenue to explain the circumstances and to settle appropriate payment arrangements.
