Revenue have announced on 17th October 2022, that they will extend the debt warehousing scheme further to 1st May 2024.
Under the scheme, businesses entered into a phased payment agreement with Revenue to repay any outstanding debt due by the end of 2022. Due to the economic challenges businesses are currently facing, this extension will help ease the pressure in meeting this deadline. Businesses will still be able to avail of the reduced 3% interest rate from 1st January 2023 compared to the usual 10%.
Revenue Collector-General, Mr Howley stated;
“Revenue appreciates the very significant challenges that businesses are currently experiencing in meeting their tax obligations, arising from the impacts of the energy costs crisis and the financial pressures these have placed on businesses as they continue their recovery from the pandemic. This extended deadline in terms of debt remaining in the warehouse, and the ongoing availability of the reduced rate of interest of 3%, will provide businesses with greater certainty in the current economic climate and give them additional time before they have to start addressing the warehoused tax debt. Where a business has the capacity to repay any or all of the debt warehoused in the meantime, then they can of course do so.“
“Because it is a condition of debt warehousing that a business keeps current returns and payments up to date, any business that experiences a cashflow or temporary difficulty in meeting a tax liability as it arises should be proactive and make contact with Revenue as soon as such a difficulty arises. As I have said on other occasions, early engagement allows us to work proactively with the business concerned towards finding an agreed solution to those temporary difficulties. That agreed solution will, in turn, ensure that the business is able to continue to avail of the debt warehousing scheme.”
Revenue will issue letters to all businesses that have availed of debt warehousing in December with a statement and details of the extension.
Please note this article is for information purposes and does not constitute advice. Details correct at time of publishing.