Local Fianna Fáil Deputy Robert Troy has welcomed confirmation that changes introducing flexibility on debt warehousing repayments are due to be announced imminently.
Deputy Troy was informed by Finance Minister, Deputy Michael McGrath, that he has been engaging with the Revenue Commissioners over the Tax Debt Warehousing Scheme and he hopes to finalise the issue “very shortly”.
Speaking in the Dáil, Deputy Tory called on Minister McGrath to reduce interest rates for businesses struggling to repay outstanding tax debt warehousing.
“Businesses who had received debt warehousing during Covid are now receiving letters from the Revenue demanding payment.
“This was a critical support at a time of Covid and helped business through a very difficult trading period. The environment is not as challenging as during Covid but it remains difficult. “Businesses are facing high energy costs, increased Vat, the auto-enrolment sick pay, increases in minimum wages. They’re all very positive in their own right, but they’re all coming together at a time that is very challenging for businesses.
“The interest rate needs to be kept as low as practicably possible and we need to ensure that any extension given to businesses to make repayments has a long duration so that sustainable businesses are given a lifeline to ensure that they continue and protect jobs," Deputy Troy said.
Minister McGrath, in response to Deputy Troy’s question, said the Revenue had assured him that they were being flexible.
“It is important that we are as flexible as possible. This tax debt will be treated very differently to other tax debt. It is very important that the businesses continue to file their current returns on time and that they meet their current taxation liabilities and on that basis the Revenue Commissioners will be very flexible with businesses.
“The requirement here is not to pay the debt by the May 1, the requirement is to engage with the revenue and agree a plan that will be worked out and implemented over a number of years," Minister McGrath said.
Deputy Troy encouraged any business owners to engage with the Revenue Commissioners about their repayments.
