Revenue issuing important Debt Warehousing Scheme Notices later this week
Revenue will issue Important Information Notices shortly to taxpayers who are availing of the Debt Warehousing Scheme.
Importantly, tax agents will not get a copy of these notices. It is critical therefore that you contact PSC if you need assistance in dealing with Revenue on this issue.
Where the business is fully up to date with their tax returns, they will receive a notice which will include a schedule of warehoused debt as at the date of the notice, broken down by tax type, period and the amount of debt warehoused.
Where a business has outstanding returns, the notice will include a schedule of outstanding returns for each applicable tax type and period. These returns must be filed before a schedule of warehoused debt can be confirmed. Revenue’s notice advises that if the outstanding returns are not submitted by 30 April 2022 the taxpayer will lose the benefit of the warehousing scheme (i.e. resulting in a crystallisation of the debt and loss of the 0% and 3% interest rates). If any of the returns submitted in relation to the warehoused debt were made on a “best estimate” basis, Revenue also advises of the importance to revise these returns by the 30 April deadline.
The notice to businesses that are fully up to date with their tax returns advises of the next steps in the scheme. Coming towards the end of Period 2 (which is 31 December 2022 for most businesses), Revenue will be in contact to discuss putting in place a tailored payment arrangement for the warehoused debt. Revenue’s approach will be flexible in that Revenue will take account of the taxpayer’s financial circumstances and there will be options available to make the payments over a reasonable period of time (at a 3% interest rate). The notice also confirms that no interest arises before Period 3 begins (1 January 2023 for most businesses).
Each type of notice advises of the requirement to keep up to date with current tax obligations. Taxpayers that have difficulty meeting their current tax obligations are advised to engage early with the Collector-General’s Division to work with Revenue to agree a solution enabling the business to retain their eligibility for the Debt Warehousing Scheme.
No action is required by businesses that qualified for the December 2021 extension to the scheme who are up to date with their returns and continue to file their returns as they fall due. Their VAT and PAYE (Employer) tax liabilities arising between 1 January and 30 April 2022 will be warehoused automatically as the returns are filed.
Revenue’s notices include details on how to contact Revenue via MyEnquiries or the phone service should further queries arise. The current ROS screens which allow taxpayers and their agents to establish what periods are filed, paid, due, or not filed, should also prove helpful.