Richard Bruton (Dublin North Central, Fine Gael)
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Question 252: To ask the Minister for Finance if his attention has been drawn to a scheme operated by the British Revenue Commissioners which allows companies experiencing temporary trading difficulties the opportunity to defer some revenue payments; if he has examined this scheme; and if elements of it could be applied in the situation here. [37898/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am assuming the Deputy is referring to the Business Payment Support Service being operated by HM Revenue and Customs that was introduced in November 2008. I am aware of that service, which is designed to meet the needs of viable businesses affected by the current economic conditions. I think it is important to clarify that it is not a scheme for deferring tax payments per se but rather involves a phased payment approach that includes interest for the late payment of the tax involved.

I know that the Revenue Commissioners are also very conscious of the difficult economic and financial climate in this country and of the challenges posed for some businesses in being timely compliant with their tax obligations. Revenue has responded to the changing environment by actively encouraging businesses experiencing particular tax payment difficulties to work proactively with them to find an agreed way through those difficulties and quickly restore timely compliance.

Revenue has developed an administrative framework to manage such cases which is, in fact, broadly similar to the UK scheme. They have published material for businesses experiencing tax payment difficulties in a prominent position on the home page of their website www.revenue.ie. I am aware that the feedback from trade representatives and tax practitioner bodies to the initiative Revenue has taken in this regard has been positive and is regarded as an effective way of supporting businesses in meeting their tax payment obligations at this time.

The Revenue Commissioners are charged with responsibility for collection and recovery of a wide range of taxes and duties. They have had and continue to have a strong focus on making sure that everyone complies with their tax and duty responsibilities by paying the right amount and on time. Revenue expects businesses to continue, notwithstanding the more difficult economic circumstances in which they are now operating, to organise their financial affairs so as to ensure that tax debts are paid as they fall due. Apart from the critical importance of timely compliance to the Exchequer, unfair competitive advantage achieved through persistent late or non-payment of tax can undermines compliant businesses. I fully support what Revenue are doing in that regard.