Alan Farrell (Dublin Fingal, Fine Gael)
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200. To ask the Minister for Finance the number of tax compliance certificates that were withdrawn in 2022, per month; the number of these that were withdrawn from small businesses; and if he will make a statement on the matter. [7343/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Tax Clearance is required for various purposes, such as renewal of a variety of licences and permits, public sector contracts, grants, subsidy payments and Government supports. While a business may have their tax clearance rescinded due to compliance issues, it can also be rescinded for reaching its expiry date. (An application for a Tax Clearance Certificate will normally expire after one year in the case of a grant application and within four years for all other applications). Where applicants address their compliance issues and re-apply, they can regain their tax clearance status. Individuals, who are not running a business, may need tax clearance to receive a grant or some other Government or Local Authority support. These are one off and are generally not renewed and are included in the rescinded numbers below.

At the outset of the Covid-19 pandemic in March 2020, Revenue took some key policy decisions to assist businesses cope with what was an unprecedented public health and economic emergency. One of those policies was to allow what were, at that stage, tax compliant businesses retain their tax clearance status. The vast majority of businesses that held tax clearance in March 2020 therefore retained that clearance status until mid-2022.

Revenue commenced a staged return to normal periodic review of tax clearance in mid-2022 for the entire case base. The process was resumed on an incremental basis in view of the large number of cases involved and was completed by 22 November 2022.

The number of tax clearance certificates that were rescinded by month in 2022 is given in the table below. It is not possible to specify the numbers that are small businesses. The increase shown for the months October – December 2022 can be attributed to the phased return to normal, pre-Covid periodic reviews during this period.

Of those who had tax clearance rescinded in 2022, I am advised by Revenue that 29% have addressed their compliance issues, re-applied and currently hold tax clearance. 3% have reapplied but have not yet succeeded in regaining their tax clearance. However, 68% of those who had their tax clearance certificates rescinded in 2022 have not yet reapplied and it is likely that many of these no longer require tax clearance.