90% of ‘parked’ tax debt paid, says Revenue
Figures from Revenue show that 90% of the tax debts that were temporarily ‘parked’ due to COVID-19 restrictions have been paid.
The Debt Warehousing Scheme allowed businesses to defer certain COVID-related tax debts, on an interest-free basis, until the end of 2022.
This was extended to 30 April 2023 for businesses impacted by the public-health restrictions introduced in December 2021.
Updated statistics published by Revenue yesterday (31 March) show that, as at the end of January 2022, almost 105,000 businesses were availing of the scheme in respect of over €3 billion in tax debts.
10% still ‘parked’
A total of 250,000 businesses have been eligible to avail of the Debt Warehousing Scheme since it began.
According to Revenue, of these:
- 59% paid all their taxes in the month it was due or, having initially availed of the Debt Warehousing Scheme, have since paid their tax debts in full,
- 36% have part-paid their warehoused debt and are continuing to avail of the scheme for about €2.7 billion in tax debt,
- 5%, or fewer than 12,000 businesses, continue to avail of the scheme in respect of all their COVID-related tax debts, totalling €300 million.
The total debt eligible for the scheme since its introduction is €30.9 billion. Revenue says, however, that 90% of that debt has been paid.
The €3 billion still warehoused represents around 10% of the total tax debt eligible for the scheme.
Tax returns
Revenue is in the process of contacting all businesses currently availing of the measure.
Collector-General Joe Howley advised firms that they could pay off some or all of their debt at any time before their deadlines.
He also reminded businesses that, while their tax debts are warehoused, they need to file current tax returns as they fall due, and pay the associated tax liabilities on time.
“Any business that doesn’t do this, will lose the benefits of the Debt Warehousing Scheme,” Howley warned.