Revenue is today reminding businesses who have recently - or will shortly - resume trading that its Debt Warehousing Scheme is still in operation.

There is no immediate requirement to pay the tax debts that have been "parked" under the scheme, Revenue added.

The scheme is structured to support cash-flow as trading resumes by allowing businesses to continue to warehouse VAT and PAYE (employer) liabilities as well as any overpayments of the Temporary Wage Subsidy Scheme (TWSS) for the initial months as restrictions are lifted.

Revenue confirmed that there are about 86,000 businesses currently availing of the scheme covering €2.3 billion in tax debt.

A key condition for businesses to continue to avail of the Debt Warehousing Scheme is that all tax returns must be filed as they fall due.

Revenue said today that businesses that are re-opening now or during the month of June can continue to add their VAT and PAYE (Employer) debts to the Debt Warehouse until August 31.

These debts will then remain "parked" on an interest free basis for a year from September, allowing businesses to continue to trade without the burden of having to immediately address the "parked debt", Revenue explained.

It is only as the interest free 12-month period comes to an end that businesses are required to agree a future payment arrangement with Revenue for the warehoused tax debt.

Revenue has assured businesses that, when the 12 month interest free period ends, the timeframe allowed to pay the warehoused debt will be flexible.

It said it will be determined by the capacity of the business to pay these arrears while also paying current tax liabilities as they arise in the normal course.

Collector-General Joe Howley said Revenue wanted to assure businesses that the warehousing of tax debts does not cease immediately following the lifting of restrictions or the recommencement of trading.

"This initiative gives viable businesses the opportunity to survive the economic shock of the pandemic and to hopefully thrive as the economy recovers," Joe Howley said.

"We will be in contact with each business that is availing of the Debt Warehousing Scheme to explain how the arrangements will operate for their business. The flexibility around debt that is warehoused will allow businesses additional time to get back on their feet after re-opening," he added.