Tom Hayes (Tipperary South, Fine Gael)
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Question 58: To ask the Minister for Finance if an instalment payment plan will be set up to assist small businesses make payments to the Revenue Commissioners, particularly during the current downturn in the economy. [44407/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A delay in collection of the revenues due impacts on the level and timeliness of financial resources available to the Government. The Deputy will also be mindful that such delays facilitate businesses, large and small, which, by withholding tax payments and using those monies to improve cash flow, gain unfair competitive advantage.

In this context, I am advised by Revenue that it expects that taxpayers and businesses organise their financial affairs in such a way as to be able to discharge those tax compliance responsibilities in full and on time.

However, where particular difficulties arise, I am further advised by Revenue that it is prepared to work with a business towards restoring timely payment of its tax debts. Crucial to Revenue's ability to work with a business in such circumstances is the quality and timeliness of engagement by the business with Revenue. Permission from Revenue, to pay a tax debt by way of a phased payment arrangement is a concession which is considered in exceptional circumstances, and must be fully justified by reference to the particular circumstances of the business concerned. Revenue has emphasised that any phased payment arrangement will include interest.