The Minister for Finance recently announced significant changes to the Tax Debt Warehousing scheme with a reduction in the interest rate applying to warehoused tax debt to 0%.
A business will get a refund of interest it has already paid of 3% on warehoused debt.
Revenue confirmed a flexible approach relating to warehoused debt. This will include the possibility to extend the duration of payment arrangements beyond the typical three to five-year duration on a case-by-case basis, and that an initial down payment may not always be required.
Currently €1.72 billion remains outstanding from 57,500 tax payers.
These changes will support otherwise viable businesses to continue to trade while having the opportunity to reduce their warehoused liabilities in a structured and manageable way.
Businesses availing of the Tax Debt Warehousing scheme need to engage with Revenue prior to 1 May 2024. They must also file their current tax returns on time and meet their current tax liabilities as they fall due.