Revenue has announced an extension of the Debt Warehousing Scheme for businesses. The extension provides that businesses with warehoused debt must either clear that debt or enter into a phased payment arrangement by 1 May 2024. Businesses will be able to avail of the reduced 3 percent interest rate from 1 January 2023, as opposed to the general interest rate of 10 percent. This will apply for any taxpayer who has warehoused their Schedule E liability which was due to be paid in October /November 2021 also.
Revenue will write to all businesses with debt in the warehouse in early December setting out their statement of debt and advising them of the extension. Revenue re-iterated the requirement for such businesses to file current returns and pay current liabilities on time and as they arise to maintain the benefits of debt warehousing.
Writing in the Irish Examiner, the Institute’s Director of Advocacy and Voice, Dr. Brian Keegan, had highlighted the cashflow dilemma facing taxpayers approaching the end of Period 2 of the debt warehousing scheme warehoused debts in light of the current energy crisis, with comments also included the Sunday Independent.
Revenue has published updated Debt Warehousing Scheme statistics its website.