Michael McGrath (Cork South Central, Fianna Fail)
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117. To ask the Minister for Finance the number of times since 2012 the Revenue Commissioners was deemed to be an excludable creditor in a personal insolvency arrangement or a debt settlement arrangement; the number of these cases per year in which the Revenue Commissioners exercised its right as excludable creditors to opt into the insolvency process; and if he will make a statement on the matter. [26105/17]

Michael Noonan (Limerick City, Fine Gael)
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Revenue’s clear preference is always to engage positively with insolvent individuals who enter into Personal Insolvency or Debt Settlement arrangements and has to date agreed terms in five hundred cases since the Personal Insolvency Act was enacted.

However Revenue can only ‘opt in’ to the process where the Personal Insolvency Practitioner on behalf of the insolvent person provides a complete account of all debts and assets and also provides any clarifications that might subsequently be required. It is not possible for Revenue to ‘opt in’ where there is incomplete information or where the tax debt can not be fully quantified.

The most common difficulties that arise for Revenue in personal insolvency situations include outstanding tax returns, receiving information that clearly conflicts with Revenue’s own data or where a Revenue audit or investigation has already started. It can also be the case that the proposals do not have the support of a sufficient number of creditors to make them financially viable for the insolvent person and that Revenue can offer a more suitable arrangement through its own debt support initiatives.

In situations where Revenue ‘opts out’ of a Personal Insolvency or Debt Settlement arrangement it continues to engage with the insolvent person and in the majority of cases agrees a mutually acceptable payment arrangement that takes due regard of the particular circumstances.  

The following table sets out the total number of Personal Insolvency/Debt Settlement applications received by Revenue to date, including a breakdown of the ‘opt in/opt out’ decisions made: