Fergus O'Dowd (Louth, Fine Gael)
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233. To ask the Minister for Finance further to Parliamentary Question No. 233 of 21 February 2023, if he will engage with the Revenue Commissioners to see if the 17-day timeline referred to (details supplied) can be reviewed given the current economic climate and difficulty businesses are facing at present with energy and cash flow issues; and if he will make a statement on the matter. [10212/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Revenue’s primary function is to ensure that all taxpayers and businesses meet their tax obligations in a timely manner. Any delay in the collection of tax impacts on the level and timeliness of the financial resources available to the Exchequer. Accordingly, Revenue has a strong focus on making sure that everyone complies with their responsibilities to file and pay the right amount of tax on time.

I am advised by Revenue that the timeline indicated by the Deputy is a ‘worst case scenario’ where there is absolutely no response or engagement from the taxpayer or the taxpayer’s agent. Where a taxpayer or agent responds to the payment request or to the final demand, additional time, with a hold on enforcement action, will be allowed once there is meaningful engagement and an effort made to address the payment issue. Revenue’s clear preference is to engage with taxpayers and, if they are experiencing tax payment difficulties, to agree a mutually acceptable phased payment arrangement (PPA). Revenue only refers outstanding tax liabilities to its enforcement agents, including Sheriffs, as a last resort. Before any such action is taken, every effort is made to engage with the taxpayer to resolve the situation and Revenue has a strong track record of success in this regard.

I am assured that Revenue is mindful of the challenges businesses are experiencing in the current economic climate and may extend greater flexibility when negotiating the terms of a PPA with a business that has temporary cash flow difficulties. To assist customers, Revenue has made available an online phased payment facility through the Revenue Online Service (ROS). This facility affords businesses considerable flexibility to self-manage their tax payment schedule in line with their operating needs or temporary cash-flow challenges, including reduced down payments, longer repayment periods and the option to take a payment break.

As regards the Deputy’s reference to difficulties businesses are facing due to energy issues, I would like to draw attention to the Temporary Business Energy Support Scheme (TBESS) which was introduced to support qualifying businesses with increases in their electricity or natural gas (energy) costs. The scheme provides for a cash payment to qualifying businesses and an extension of the scheme, together with relaxed eligibility conditions, has been announced. These proposed changes should see additional businesses qualifying for the scheme and benefit from an increased payment for the extended claim periods.