Tax Debt Warehousing Scheme: A Revenue Warning

Posted in Good Advice, Taxation

The Revenue Commissioners are writing to taxpayers who are availing of the tax Debt Warehousing Scheme. The letters cover taxpayers whose tax returns are up to date, taxpayers with outstanding tax returns and taxpayers with outstanding tax returns who are also claiming the Employment Wage Subsidy Scheme (EWSS) and/or the Covid Restriction Support Scheme (CRSS).

The key qualifying criteria for the Debt Warehousing Scheme require that all tax returns must be filed, even if the liability cannot be paid or there is no liability, and that current taxes are paid as they fall due once restrictions are lifted.

Revenue are warning taxpayers who do not keep up to date with tax compliance that they risk having the favourable tax debt arrangement withdrawn, losing their tax clearance and having EWSS and CRSS payments stopped. 

It is very important to understand that tax clearance is a key eligibility requirement for both EWSS and CRSS. If the outstanding tax returns are not filed within 21 days, tax clearance will be rescinded, and a taxpayer will not be eligible for the EWSS or CRSS and future payments of EWSS and CRSS will cease.

Approximately 70,000 businesses are currently availing of the tax debt warehousing scheme, which covers €1.9 billion in tax debt. Earlier this month a Revenue press release warned that 28,700 businesses not keeping up to date with their tax compliance risk having the favourable tax debt arrangements withdrawn and also risk having tax clearance withdrawn and EWSS/CRSS payments stopped. 

So taxpayers with outstanding returns are advised to take immediate action and those availing of EWSS and/or CRSS must file outstanding returns within 21 days of the date of the Revenue letter.

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