Dáil Éireann Debate, Thursday - 29 November 2012
54. Deputy Jerry Buttimer asked the Minister for Finance if support measures, such as moratorium on instalments, can be put in place by Revenue to assist a young small business (details supplied) to continue to trade, thereby securing its financial position, ensuring its medium and long term success and providing employment; and if he will make a statement on the matter. [53398/12]
Amharc ar fhreagraI am advised by the Revenue Commissioners that it has been engaged with the business in question on an ongoing basis over the past four years to help it meet its tax obligations. In March 2012 Revenue facilitated a four year phased payment arrangement, which is in excess of normal timelines for such agreements, to help the business pay arrears of tax that had accumulated over the previous number of years. A condition of the phased arrangement is that current taxes are paid as they fall due, but unfortunately there have been a number of occasions where the business has failed to honour its commitments in this regard. Currently there are both VAT and PAYE/PRSI payments and returns outstanding, as well as certain payments due to the Sheriff, which were agreed by the business separate to its agreement with Revenue.
Revenue is conscious that the current economic climate is exerting financial pressure on some businesses and in such circumstances is prepared to work with them to meet their tax obligations, as has been the situation in this case. However any such assistance must take account of Revenue’s responsibility to maintain a level playing field for other businesses that are tax compliant and in that context a moratorium on tax debt cannot be considered.
Notwithstanding the above, Revenue remains committed to engaging with the business but can only do so if there is meaningful engagement and a clear commitment from the business to honour terms as agreed. In circumstances where the terms of the agreement are not adhered to and where the business does not put realistic alternative proposals to Revenue, then Revenue has no choice but to commence enforcement proceedings to secure the outstanding tax debts.
