We recently informed readers in Tax News that Revenue has enhanced its Phased Payment Arrangement (PPA) system to allow both warehoused debt and non-warehoused debt to be included in one PPA. Revenue has confirmed to the Institute that the standard down payment of 25 percent (40 percent where tax clearance is required) required to enter a PPA will also apply to warehoused debt. However, Revenue recognises the difficulties that many businesses are encountering and intends to be flexible and take account of the financial circumstances of the business concerned on a case-by-case basis where appropriate.
Revenue has said that its approach will be a balanced one seeking to secure a level of ongoing repayment that is reasonable and that affords each business a reasonable opportunity to clear the debts in the warehouse.