Bulk of debt still owed through scheme is warehoused by only 5,900 businesses
The most recently published figures show there is €1.9 billion of outstanding tax debt warehoused with Revenue. Photograph: Nick Bradshaw Just under 60,000 Irish businesses that availed of Revenue’s pandemic-era debt warehousing scheme still owed a combined total of €1.
9 billion as of the end of August. The scheme was introduced at the height of the pandemic in May 2020 to provide “a vital liquidity support to businesses”, allowing them to defer paying various tax liabilities until their financial position returned to normal. In light of the challenging economic situation linked to higher energy prices last year, Revenue extended the scheme with companies now given until May 1st next year to start making arrangements to repay. The most recently published figures relating to the scheme, from the end of August, showed that there was €1.906 billion of outstanding debt warehoused.TV View: Stinker avoided as England take Jack Charlton approach to Rugby World Cup ‘How are you meant to enjoy sex and a relationship?’ The reality of living with your parents in your 30sRevenue noted the debt was linked to more than 59,500 businesses and comprised €947 million of VAT; €798 million of employers’ PAYE; €51 million of income tax; and €110 million relating to the temporary Covid-19 wage subsidy scheme and its predecessor. Revenue says the bulk of debt still owed through the scheme is warehoused by just 10 per cent – or only 5,900 – of those businesses, all of which have outstanding balances greater than €50,000, and which, between them, account for €1.6 billion of the warehoused debt. Revenue says a third of the companies with debt outstanding owe less than €100, 15 per cent have warehoused debts between €101 and €1,000, and a further 18 per cent have warehoused debts between €1,001 and €5,000. In total, 66 per cent of businesses in the warehouse have an outstanding balance of less than €5,000. “Revenue has continually engaged with businesses that have debt in the warehouse to ensure they are fully aware of the amounts outstanding and the full range of options available for repayment of same,” a Revenue spokesman said. “Revenue’s expectation is that businesses will continue to proactively make plans to address the payment of their warehoused debt and reduce their interest costs for the remainder of the year and into early 2024,” he said. “Revenue have commenced direct engagement with businesses to encourage businesses to consider their payment options, including tailored phased payment arrangements by agreement. Revenue will continue this engagement for the remainder of 2023 and into 2024,” he added. For businesses experiencing payment difficulties, he said Revenue’s advice was to actively engage with the tax authority “to agree upon a mutually agreeable solution”. “Revenue has a proven track record in agreeing flexible payment arrangements that take account of the financial circumstances of each business and their capacity to pay,” he said, noting these flexibilities can include a reduced down-payment amount to commence the payment arrangement, an extended payment duration of up to five years and the availability of payment breaks and payment deferral when temporary cash-flow difficulties arise during the arrangement term.The Gone: Is RTÉ taking licence-fee payers for fools by passing this off as Irish drama
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