Michael McGrath (Cork South Central, Fianna Fail)
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66. To ask the Minister for Finance the amount of money owing by businesses to the Revenue Commissioners under each tax heading; the age profile of the arrears; and the steps being taken by the Revenue Commissioners to engage with businesses currently struggling to meet their tax liabilities. [54554/13]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, the Deputy will be aware that the debt collection environment continues to be very challenging for Revenue given the ongoing difficult financial environment. In that regard I am assured that Revenue is very conscious of the challenges that exist for some businesses in meeting their tax obligations in a timely manner. Its debt collection caseworkers will always seek to work proactively with taxpayers and viable businesses that engage positively to agree mutually satisfactory arrangements to overcome temporary cashflow difficulties in preference to deploying enforcement options. I am informed that the total outstanding tax debt at 31 March 2013, the latest date for which published data is available, amounted to €2,006m. An aged analysis of this debt figure is included in the following table.

However the ‘debt available for collection’ portion of the total debt, which excludes both debt under appeal to the Appeal Commissioners and insolvent debt was €1,180m at 31 March 2013. This figure, which is a more accurate reflection of the debt available to Revenue to manage through its debt management programmes was €137m or 10% less than the same period in 2012. Of the €1,180 million ‘debt available for collection’ figure at 31 March 2013, €476m was under active enforcement and a further €124m was the subject of phased payment arrangements.

I am assured by Revenue that, notwithstanding the continuing very difficult environment, achieving further reductions in collectible debt is a key strategic objective. I am satisfied that the continuing trend in decreasing levels of ‘debt available for collection’ over the last couple of years is encouraging and clearly demonstrates the success of Revenue’s current approach to debt management.

Age Analysis of Total Debt by Year of Assessment as at 31/03/2013

Age Analysis of Debt Available for Collection by Year of Assessment as at 31/03/2013