IRE Tax Debt Warehousing Scheme

On Oct. 18, IRE Tax issued extension to debt warehousing scheme.

  • IRE Tax issued extension to the Debt warehousing scheme due to economic situation.
  • Overview
  • The Debt warehousing scheme was introduced to provide a vital liquidity support to businesses suffering a downturn due to the Covid-19 pandemic.
  • Businesses with warehoused debt were due to enter into arrangement with IRE Tax to deal with debt by Dec. 31, 2022 (or May 1, 2023 for those with extended deadline).
  • Given current economic uncertainty, IRE Tax has extended timeline to May 1, 2024.
  • Businesses will not be faced with either clearing the debt in the warehouse or entering into a phased payment arrangement to clear the debt until May 1, 2024.
  • Importantly, the reduced 3% interest rate applies to businesses from Jan. 1, 2023, as opposed to the general interest rate of 10%, when businesses come to pay the debt.
  • IRE Tax will write to all businesses with debt in the warehouse in early Dec. 2022.
  • Setting out statement of debt in warehouse and advising of extension announced, and reminded of importance of filing current returns, paying current liabilities on time.
  • Important to keep current returns/payments up-to-date and early engagement with IRE Tax where businesses experience payment difficulties to meet tax obligations.
  • Effectiveness
  • The Debt warehousing scheme has been extended to May 1, 2024.
  • In Feb. 2024 IRE GVT announced significant change to tax debt scheme, see #200399.

Regulators IRE Tax
Entity Types Auditor; CNSM; Corp
Reference PR 10/18/2022; COVID-19
Functions Accounting; Financial; HR; Tax; Treasury
Countries Ireland
Products Corporate; Equity
Regions EMEA
Rule Type Final
Rule Date 10/18/2022
Effective Date 5/1/2024
Rule Id 150912
Linked to N/A
Reg. Last Update 10/18/2022
Report Section EU

Last substantive update on 10/20/2022