As business owners fall due to file returns Minister Donohoe takes opportunity to remind them of need to continue to file returns on time
Following the signature of the Finance (Covid-19 and Miscellaneous Provision) Act into law on 19th July, Minister for Finance, Paschal Donohoe has today (Friday) reminded business owners that the time during which tax debts may be warehoused has been extended.
For eligible businesses, Period 1, during which tax debts may be warehoused, is now extended to 31st December 2021. Period 2, during which no interest will be payable, is now extended to 31st December 2022. The taxpayer is required to repay the relevant tax during Period 3, when interest is charged at 3%.
Minister Donohoe said: ‘The extension of the period during which tax debts may be warehoused will give clarity and certainty to businesses in relation to their tax liabilities for the remainder of 2021. It will assist businesses with their cash-flow for the remaining months of the year as they seek to emerge from months of lost or very diminished trade’.
“It should, therefore, help them recover and build up their reserves again, thereby helping to further secure their long-term economic viability and survival. The extension of Period 1 until the end of 2021 will also provide businesses with additional breathing space on reopening, allowing additional liabilities to be warehoused and further deferring the date on which payment of current and warehoused liabilities will commence.
“Tax Debt warehousing has provided significant liquidity assistance to businesses during the pandemic, with over €2.4 billion warehoused by over 86,000 businesses.
“Taxpayers availing of debt warehousing are contacted regularly by Revenue to advise them of the liabilities and their obligations under the scheme, which include the filing of all required returns and payment of other liabilities. A number of businesses are due to file returns today (23rd July). I am taking this opportunity to remind businesses of the need to continue to file their tax returns on time while they are availing of warehousing.”
ENDS
Notes to editors:
The end of Period 1 was previously linked to the re-opening of that business, in line with the relaxation of restrictions for particular sectors.
Businesses whose taxes are warehoused are still be able to obtain tax clearance certificates if they meet their other tax obligations.
The Warehousing Scheme applies only to:
- Value-Added Tax (VAT)
- PAYE (Employer) which includes the following remitted by employers under the Pay As You Earn (PAYE) System:
- Income Tax (IT)
- Pay Related Social Insurance (PRSI)
- Universal Social Charge (USC)
- Local Property Tax (LPT)
- Certain Income Tax (IT) liabilities for self-assessed taxpayers
- Temporary Wage Subsidy Scheme (TWSS) overpayments
- Employment Wage Subsidy Scheme (EWSS) overpayments
Additional information on warehousing is available on the Revenue website at https://www.revenue.ie/en/corporate/communications/documents/debt-warehousing-reduced-interest-measures.pdf
A total of €2.4 billion has been warehoused (€1.107 million in PAYE (Employer) liabilities which includes approximately €398 million in PRSI, €1.275 million VAT and €33 million income tax).