As previously reported, taxpayers have until 1 May 2024 to agree a Phased Payment Arrangement (PPA) with the Irish tax authorities to repay tax debt held within the Debt Warehousing Scheme. However, some changes to the scheme are expected following comments last week from Minister for Finance, Michael McGrath TD, as he urged businesses to engage with Revenue. The remarks follow reports that businesses in certain sectors will face difficulties in repaying the warehoused debt.
Revenue’s stated priority is to assist taxpayers in addressing the payment of their warehoused debts as flexibly as possible and are encouraging taxpayers to engage with officials now to address the debt position. The Institute will keep members apprised of any updates via Tax News.
The Debt Warehousing Scheme is currently in Period 3, running from 1 January 2023 to 1 May 2024, with interest accruing at 3 percent per annum on the unpaid debt. The 3 percent interest charge will be incorporated into the PPA for its duration. Where there is no PPA, the interest will be charged retrospectively.
Taxpayers are reminded that while they have until 1 May 2024 to agree a PPA with Revenue, they can make interim payments during this period, and also request for the offset of any refunds owing against the balance of tax warehoused.
Revenue has prepared a number of ‘How to” videos in relation to the PPA process which are now available on the Revenue website (link to videos). The Institute will continue to keep members updated via Tax News.