Minister for Finance Michael McGrath is urging businesses who are using the Tax Debt Warehousing scheme to engage early with Revenue ahead of the May 1 deadline to discuss their individual circumstances and agree arrangements to address their liabilities.
The Tax Debt Warehousing scheme allowed businesses to temporarily defer VAT and Employer PAYE, certain self-assessed income tax liabilities, and Temporary Wage Subsidy Scheme and Employment Wage Subsidy Scheme overpayments on an interest-free basis for an extended period of time.
The applicable interest rate of 3% for the scheme was reduced to 0% in February.
While the total amount of debt warehoused has decreased by €1.5 billion since January 2022, €1.65 billion is still outstanding in respect of 55,490 individual taxpayers.
About 70% of businesses with debts in the warehouse owe amounts of less than €5,000. Most of the debt (€1.41 billion) is warehoused by 5,040 customers with outstanding balances greater than €50,000.
A total of 2,760 customers had agreed Phased Payment Arrangements (PPAs) for €237m of warehoused debt by the end of March.
The Minister noted the proactive approach by Revenue in refunding customers who have paid interest at 3% and by adjusting the terms of active Phased Payment Arrangements (PPAs).
Mr McGrath also noted the flexible approach being taken by Revenue in working with customers on a case-by-case basis and giving them every support in managing their liabilities over a timeline that suits the particular circumstances of their business.
He said Revenue will continue to apply this flexible and pragmatic approach, provided that businesses meet the key conditions of the scheme - that they continue to file their current tax returns and pay current liabilities as they fall due, and that they engage with Revenue in advance of the May deadline to agree a payment plan for their warehoused debt.
"The reducing amount of debt in the warehouse and the associated number of customers involved demonstrates that businesses are working with Revenue to pay the amounts due," Mr McGrath said.
But he added that the liabilities of over 55,000 customers remain in the warehouse.
"It is important to note that, businesses are not required to pay all of their warehoused debt by May 1, 2024," he said.
"However, in order to avail of the 0% interest and flexible payment options, they are required to engage with Revenue to make arrangements to pay the debt over an agreed period of time, based on their individual circumstances and capacity to pay," he said.
"A key condition of the scheme is that taxpayers continue to file their current tax returns on time and meet their current tax liabilities as they fall due," he added.
