Written answers
Tuesday, 11 June 2024
Department of Finance
Revenue Commissioners
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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193.To ask the Minister for Finance further to Parliamentary Question Nos. 237 of 14 May 2024 and 220 of 21 May 2024, how many companies had failed to engage with the Revenue Commissioners as of 31 May 2024 to date under the debt warehousing scheme; the total tax debt owed by this cohort; the breakdown of this information, by division and by NACE economic sector, in tabular form; and if he will make a statement on the matter. [25295/24]
Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy is aware, the Tax Debt Warehousing Scheme was introduced in May 2020 to provide a vital liquidity support to businesses impacted by Covid-19 trading restrictions. The scheme allowed businesses to temporarily ‘park’ eligible taxes on an interest-free basis, the vast majority of which related to VAT and payroll taxes deducted by employers from their employees. Businesses had until 1 May 2024 to put a plan in place to address their warehoused debt. Revenue is firmly committed to supporting viable businesses and has taken a flexible and pragmatic approach to the payment of warehoused debt. The scheme has now ended.
On 5 June 2024, Revenue published a detailed statistical report on the Debt Warehousing Scheme which demonstrates the significant level of engagement with Revenue in the weeks leading up to the 1 May 2024 deadline. The report contains details on the 12,747 Phased Payment Arrangements (PPAs) agreed for €1.2 billion of warehouse debt, in addition to analysis of the 7,042 taxpayers who have been removed from the warehouse.
A breakdown of the 7,042 taxpayers by Division and by Sector is set out in the tables below. This debt is now subject to normal collection and enforcement proceedings, and is subject to interest at the standard rate of 8% or 10% as appropriate.
| Division | Taxpayer Count | Total Balance |
|---|---|---|
| Business | 6,637 | €89,933,918 |
| Personal | 299 | €2,263,300 |
| Medium Enterprises, Large Corporates and High Wealth Individuals | 106 | €8,397,098 |
| Total | 7,042 | €100,594,316 |
| Sector | Taxpayer Count | % | Tax Debt (€m) | % |
|---|---|---|---|---|
| Construction | 1,179 | 17% | 18.86 | 19% |
| Wholesale and Retail Trade | 1,084 | 15% | 16.06 | 16% |
| Accommodation and Food | 762 | 11% | 13.43 | 13% |
| Professional, Scientific, and Technical | 681 | 10% | 11.25 | 11% |
| Manufacturing | 408 | 6% | 6.19 | 6% |
| Administrative and Support Service | 322 | 5% | 4.14 | 4% |
| Transportation and Storage | 319 | 5% | 5.02 | 5% |
| Agriculture, Forestry, and Fishing | 280 | 4% | 3.25 | 3% |
| Human health and Social Work | 279 | 4% | 2.02 | 2% |
| Information and Communication | 264 | 4% | 6.88 | 7% |
| Real Estate Activities | 244 | 3% | 2.27 | 2% |
| Education | 214 | 3% | 1.71 | 2% |
| Arts, Entertainment, and Recreation | 182 | 3% | 1.87 | 2% |
| Financial and Insurance | 67 | 1% | 1.54 | 2% |
| All other sectors | 757 | 11% | 6.11 | 6% |
| Total | 7,042 | 100% | 100.59 | 100% |
The statistical report is available from the Revenue website here:
www.revenue.ie/en/corporate/documents/statistics/registrations/covid-19-support-schemes/2024/warehouse-debt-statistics-030624.pdf.
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