Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Regarding the two specific questions posed to me, and starting with the warehousing of tax liabilities, the policy in this regard is and will be that companies availing of the ability to warehouse their tax liabilities will have a 12-month period in which no interest will be charged. After that point, they will move to an interest rate of 3%. For many companies that will be affected by this, the period during which the 3% rate will apply will begin after the first quarter of next year. Concerning how that liability will be managed, it will be up to the Revenue to determine the situation company by company regarding the appropriate way in which that tax should be repaid.

I strongly believe this tax must be repaid. Many taxpayers went ahead during times of difficulty for them and paid their taxes when they were due. Some did not avail of tax warehousing and for some it was not even an option. While I appreciate that the payment of those tax liabilities in future could be a challenge to those who availed of warehousing, I am sure the Revenue will deal with this process in an appropriate manner in respect of agreeing to a payment schedule. The policy on this issue, however, is clear. That tax is to be repaid. It will, though, be repaid over a long period, and for the first year of that period, a 0% interest rate charge will be applicable.

Turning to the point raised by the Chair concerning the pension and taxation issue, I will need to get more detail from him, including perhaps the letter from his constituent. I will need to respond to that query separately because I cannot at this meeting. I will respond, however. I am very much aware of the cost-of-living pressures that I debated in the Dáil earlier today and now with several members of this committee. The Chair will be aware of the measures the Government has introduced to try to deal with these pressures. The inflation changes in this context have happened recently, but they are a real challenge for those facing them. I have outlined to the Chair and the committee on several occasions what the Government has done to try to help our people with these higher costs.