Last week, Revenue published preliminary headline results for 2023 showing record-breaking total collections for tax and duties of €87.2 billion, as well as a further €26 billion on behalf of other government departments (including local property tax and PRSI). Income tax, corporation tax and VAT were the largest contributors to the tax take in 2023 at €32.9 million, €23.8 million and €20.3 million respectively, all higher than 2022 figures. The next highest contributor was excise at €5.6 million.
Combatting non-compliance remains a key priority for Revenue, as well as confronting taxpayers seeking unfair advantages by means of various tax-avoidance schemes. In addition, administering the new Pillar Two legislation (ensuring certain multinational enterprises pay a minimum level of taxation) will be a priority.
Businesses will also be required to settle warehoused debt by 1 May 2024. At the time of writing, debt warehoused under the Debt Warehousing Scheme stands at €1.4 billion. In their press release, Revenue noted:
“The past four years have been a period of exceptional disruption in which we suspended our enforcement activity for a considerable period of time. This has had an impact on timeliness of payment and the levels of debt. At the end of 2019 the debt available for collection was €0.9 billion compared to €1.4 billion now. Our Debt Management System, which we developed in 2019, is now fully deployed in dealing with outstanding liabilities.
Where taxpayers experience challenges in being timely compliant, we strongly encourage them to engage with us as soon as such difficulties start to emerge so that a mutually agreeable solution that takes account of their financial circumstances can be agreed. In the absence of meaningful and timely engagement with Revenue, Revenue will proceed with appropriate collection and enforcement action to recover the debt.”