Written answers

Thursday, 4 July 2024

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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113. To ask the Minister for Finance to provide, in tabular form, a regional and county breakdown of the number of businesses who remain non-compliant with the debt warehousing scheme; if he has any concerns as to a disproportionate effect in terms of rural and regional economic fallout; and if he will make a statement on the matter. [23236/24]

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)
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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. Warehouse customers had until 1 May 2024 to put a plan in place to address their warehoused debt prior to the scheme ending. However, Revenue is firmly committed to supporting viable businesses and has taken a flexible and pragmatic approach to the payment of warehoused debt.

On 5 June 2024, Revenue published its detailed statistical report on the 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 agreed for €1.2 billion of warehouse debt, in addition to analysis of the 7,042 taxpayers who have been removed from the warehouse. The report is available at the following link:

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A breakdown of these 7,042 taxpayers by county is set out in the table below, which shows that the non-compliant former warehouse cases are spread reasonably evenly across counties, with the larger urban areas having a larger share. This is in line with the geographical spread of the cases that availed of the scheme during the years when it was in operation and would not appear to suggest a disproportionate effect in terms of rural and regional economic fallout.

Taxpayers removed from the Tax Debt Warehousing scheme by county:

County No. of Taxpayers Relevant debt (€m)
Carlow 89 0.64
Cavan 102 0.69
Clare 149 2.11
Cork 663 6.85
Donegal 237 2.26
Dublin 2,258 45.40
Galway 404 7.28
Kerry 186 1.78
Kildare 385 4.96
Kilkenny 136 1.36
Laois 97 1.51
Leitrim 57 0.39
Limerick 231 2.78
Longford 74 0.69
Louth 220 3.00
Mayo 189 2.27
Meath 306 2.72
Monaghan 85 1.22
Offaly 70 0.38
Roscommon 83 1.03
Sligo 78 0.64
Tipperary 176 2.19
Waterford 188 1.78
Westmeath 120 1.35
Wexford 233 1.82
Wicklow 226 3.49
Grand Total 7,042 100.59

This debt is now subject to Revenue's normal collection and enforcement proceedings and is subject to interest at the standard rate of 8 per cent or 10 per cent as appropriate. I am advised that Revenue only commences enforcement proceedings for outstanding tax liabilities as a last resort, where there has been no meaningful engagement from the taxpayer. Revenue has commenced reviewing these cases and will determine the appropriate actions on a case-by-case basis, having regard to the individual circumstances of each taxpayer.

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