- The tax debt warehousing scheme is expiring on 1 May
2024 and any companies with warehoused tax debt on that debt
must have a payment plan agreed with the Revenue
Commissioners
- In the absence of a plan, directors may run the risk of the Revenue
Commissioners seeking to initiate winding up orders against companies with
outstanding warehoused debts, which could have personal ramifications for
directors.
- The Small Company Administrative Rescue Process (SCARP) commenced in December
2021 as an alternative to examinership and to provide SME’s with a viable
restructuring process
- SCARP was designed to be a predominantly out of Court process and therefore
be a cheaper and more realistic alternative to SME’s (which account for 98% of
companies in Ireland)
- In addition to being a cheaper process, it is also a quicker process and can
be approved and enforced within 70 days (vs 100 days examinership process)
- Whilst SCAPR can assist directors who may need a formal process to deal with
their tax debts, it can also be used as an opportunity to right-size a company’s
entire balance sheets and supports its trading function.