Dáil Éireann Debate, Tuesday - 23 March 2010
234 Deputy Seán Sherlock asked the Minister for Finance if he will take steps to allow businesses more favourable terms in relation to their VAT repayments and in relation to tax arrears; and if he will make a statement on the matter. [12751/10]
Amharc ar fhreagra235 Deputy Seán Sherlock asked the Minister for Finance if his attention has been drawn to the fact that many businesses have been penalised in respect of their VAT and tax repayments even though they have met their full obligations for a given year but have underpaid their preliminary amount; and if he will make a statement on the matter. [12752/10]
Amharc ar fhreagraI propose to take Questions Nos. 234 and 235 together.
It is assumed that the Deputy is referring to the challenge for businesses in meeting their tax obligations in a timely fashion and the requirement on individuals and companies to ensure that at least the minimum amounts of preliminary tax, whether in regard to corporation tax or income tax, are paid.
This is a matter in the first instance for the Revenue Commissioners who are charged with responsibility for the timely collection and recovery of taxes and duties due to the Exchequer. I know that Revenue has a strong focus on making sure that everyone complies with their tax and duty responsibilities by paying the right amount and on time. Revenue expects businesses to continue, notwithstanding the more difficult economic circumstances in which they are operating at present, to organise their financial affairs in such a fashion as to ensure that tax debts are paid as they fall due. I fully support what Revenue are doing in that regard.
Revenue is very conscious of and appreciates that the difficult economic and financial climate that prevails poses challenges for business in being timely compliant. Revenue have responded to the difficult environment by actively encouraging businesses experiencing particular payment difficulties to work proactively with them when such difficulties start to arise in order find an agreed way through those difficulties and quickly restore voluntary timely compliance. Revenue has developed an administrative framework to manage such cases, and has published material for businesses experiencing tax payment difficulties on its website www.revenue.ie.
Where businesses or individuals fail to meet their tax payment obligations on time, including the need to pay the necessary amount of preliminary tax for income tax or corporation tax, then those individuals or businesses are liable to interest. Interest on late payment of tax operates not just as a compensation for the Exchequer for the late payment of monies due to it but also levels the playing field between those who meet their tax obligations on time and those who pay late. I am satisfied that Revenue's actions in regard to the collection of interest are reasonable. Those businesses and individuals who comply on a voluntary and timely basis must be confident that their efforts are recognised through the imposition and collection of interest from those who pay late.
