Willie O'Dea (Limerick City, Fianna Fail)
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269. To ask the Minister for Finance if his attention has been drawn to the fact that the Revenue Commissioners are now demanding that businesses settle tax owed under the debt warehousing scheme (details supplied); his views on whether the insistence by the Revenue Commissioners on the repayment of warehoused debt will lead to bankruptcies; his plans to deal with this situation; and if he will make a statement on the matter. [49808/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Debt Warehousing Scheme has offered valuable and practical liquidity support to individuals and businesses, assisting them with their cash-flow during the difficult trading periods associated with the COVID-19 pandemic. The objective of the scheme is to support the long-term economic viability and survival of the participants/businesses concerned. The Deputy will be aware that, under the scheme, participants can temporarily ‘park’ certain tax debts on an interest free basis until the end of 2022, or until 30 April 2023 for businesses impacted by the public health restrictions introduced in December 2021. To remain eligible for the scheme and to avail of the significantly reduced interest rate of 3% per annum that applies to the repayment of the warehoused debt, returns must be filed for all periods covered by the scheme and current taxes must be paid as they fall due.

I am advised by Revenue that the total debt eligible for the Debt Warehousing Scheme since its introduction is €31.9 billion, and 256,000 businesses have availed of the scheme at various stages during the scheme’s duration. However, as at end August 2022, almost 92% of that debt has been paid, leaving a balance of €2.65 billion currently in the warehouse in respect of approximately 78,600 individual entities.

There is no obligation on businesses to start repaying their warehoused debt until January 2023 (or May 2023 for those entitled to the extension) although, some businesses are paying some or all of the debt as their financial circumstances permit.

Revenue will engage with the majority of businesses who have debt in the warehouse in advance of end December 2022 to agree tailored arrangements appropriate to the individual business circumstances to deal with the debt. For the small number of customers who qualified for the warehouse extension due to the public health restrictions introduced in December 2021, Revenue will engage with these customers in advance of end April 2023.

I know that Revenue fully appreciates the challenge for businesses in paying their outstanding liabilities in a difficult economic and financial climate. Revenue has a strong track record of successfully working with individuals and businesses who engage early to resolve their payment difficulties, and, in most cases, a mutually satisfactory solution is found without resorting to debt collection/enforcement sanctions.