Michael McGrath (Cork South Central, Fianna Fail)
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349. To ask the Minister for Finance the position regarding an appeal submitted to the Revenue Commissioners by a person in County Cork (details supplied); and if he will make a statement on the matter. [42269/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that interest charges are levied on taxpayers who do not meet their tax payment obligations in a timely fashion or who seek to pay their liabilities through phased arrangements. The charges are imposed to compensate the Exchequer for the late payment of funds and to ensure equity for the vast majority of taxpayers who pay on time.

In regard to the specific case to which the Deputy refers, the person in question has been facilitated with three 'informal' phased payment arrangements to meet his liabilities over the last four years without the inclusion of any interest. However, in spite of receiving concessions beyond what would normally be allowed, his payments patterns have not improved and he has consistently failed to meet his tax obligations in a timely manner.

Given the person's continued failure to pay his taxes on a timely basis and given the latitude that Revenue has already allowed him over an extended period of time it is not possible to again provide such an arrangement without an interest element being included.

However, notwithstanding the previous difficulties, Revenue is willing to facilitate the person with a formal 12 month phased arrangement to help him meet his 2013 Income Tax liability. A proposal in this regard was offered to the person on 24 October 2014. The proposed arrangement includes interest charges in respect of an insufficient Preliminary Tax payment for the year and in respect of the 12 months of deferred payments.  

The proposal is open to the person to agree to up to 8 November 2014 and I am assured by Revenue that no debt collection/enforcement action will be started before that date.