Last week Revenue published a detailed statistical report on the Debt Warehouse Scheme. Over 93 percent of the €3.2 billion debt warehoused at its peak in January 2022 has been either paid in full, secured under a phased payment arrangement (PPA) (or in the process of being secured), or is awaiting approval to offset the debt. In May, €100 million of warehoused debt was collected.
At the time of writing, 12,747 businesses have agreed PPAs totalling almost €1.2 billion. Revenue will continue to monitor compliance with the terms of PPAs. All current returns and liabilities should be submitted and paid on time for businesses availing of PPAs to continue availing of the 0 percent interest rate. Where businesses encounter difficulties paying current taxes, they should engage with Revenue so that a mutually acceptable solution can be found.
Demands were issued to 11,724 businesses with warehoused debt that had not engaged with Revenue by the 1 May 2024 deadline. Forty percent of those businesses have since engaged. With a total debt of €100 million, the remaining 7,024 businesses have been removed from the warehouse. This debt is now subject to normal collection and enforcement proceedings and is subject to interest at the standard rate of 8 – 10 percent as appropriate. Further information is available in Revenue’s press release.
Commenting on the scheme, Minister McGrath stated:
“I wish to acknowledge the work of the Collector General’s Division in Revenue and the success of the Tax Debt Warehousing scheme in supporting viable businesses and employments during an unprecedented and exceptionally difficult trading environment. Thanks to their efforts, the scheme successfully offered valuable and practical liquidity support to businesses by assisting with their cash-flow, thereby preventing business failure.
I also wish to acknowledge the significant levels of engagement to date by taxpayers and their agents in agreeing realistic payment plans tailored to their particular circumstances. As a result of their engagement, the amount of warehoused tax debt has reduced by a substantial €284 million since January of this year.
For those customers who have agreed PPAs, it is important to note that in order to retain the 0 per cent interest rate, it remains a key condition that current taxes are filed and paid as they fall due, and that all monthly payments are honoured as agreed.
It is important to highlight that any taxpayer experiencing temporary cashflow difficulties which impact on their ability to meet their tax obligations on a timely basis should engage with Revenue at the earliest opportunity. Revenue will work with viable businesses in a fair and pragmatic way to agree mutually acceptable payment solutions. On a case-by-case basis this may include options such as a payment deferral or a payment break, rather than deploying debt collection and enforcement options.”
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