Paschal Donohoe (Dublin Central, Fine Gael)
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One of the primary functions of Revenue is the collection of tax and ensuring that all taxpayers pay the correct amounts due in a timely manner. The majority of taxpayers continue to file and pay their taxes on time, and do not require notification from Revenue to pay outstanding debts.

During the COVID-19 pandemic, Revenue suspended debt enforcement in line with the Government’s introduction of the Debt Warehousing Scheme which provided a vital liquidity support to businesses experiencing cash-flow and trading difficulties due to the pandemic. Under the scheme, businesses can temporarily ‘park’ certain tax debts on an interest free basis, and the period during which these debts can remain ‘parked’ was recently extended to May 2024. Almost 73,000 individual entities are availing of Debt Warehousing to the value of €2.5 billion. Consequently, these debts are not subject to current debt collection or enforcement action.

Earlier this year, Revenue commenced a phased return to standard debt collection for non-warehoused debt which had been partially suspended since the start of the pandemic in March 2020. As part of Revenue’s standard debt collection procedure, where current taxes become overdue, a request for payment will issue with details of the tax(es) due, requesting payment within a set timeframe. The request for payment outlines the consequences of continued non-payment and affords the taxpayer up to 10 days to engage. In the absence of customer engagement, a final demand issues allowing another 7 days for the customer to engage. Where there is continued lack of engagement from the customer in response to these notices, the case is escalated for further action.

Generally, on receipt of a 7-day final demand, the majority of taxpayers take action to resolve their payment difficulty. Revenue encourages taxpayers to engage early when payment difficulties arise, particularly during the current energy costs crisis. Revenue has a strong track record of successfully working with individuals and businesses to resolve their payment difficulties without resorting to enforcement action.

The table below outlines the number of final demands issued from 2016 to 31 October 2022. The important message for taxpayers who receive these notices is to engage with Revenue at the earliest opportunity so that a mutually acceptable solution can be found.

I am advised that Revenue only refers outstanding tax liabilities to its enforcement agents, including Sheriffs, as a last resort. Before any such action is taken, Revenue makes every effort to engage with the taxpayer to resolve the situation. The table below provides the number of warrants issued to the Sheriffs from 2016 to 31 October 2022.