IRE GVT Tax Debt Warehousing Change


On Feb. 5, IRE GVT announced significant change to tax debt scheme.


  • Minister for Finance, Michael McGrath T.D., announced significant changes to Tax Debt Warehousing scheme of reduction in interest rate for the warehoused tax debt to 0%.
  • Follows IRE Tax Oct. 2022 issued debt warehousing scheme extension, see #150912.
  • Scheme Changes
  • Tax Debt Warehousing scheme allowed firms to temporarily defer VAT and PAYE, some self-assessed tax liabilities, Temporary Wage and Employment Wage Subsidy Schemes over-payments, on interest-free basis for period, after which 3% rate applied.
  • IRE Tax confirmed, where a business has already paid warehoused debt, which was subject to interest at 3%, it will get a refund of that interest, to ensure fair treatment.
  • Minister McGrath has also noted today’s statement by IRE Tax confirming the flexible approach it is taking in working with various customers in relation to warehoused debt.
  • This will include possible extension of duration of payment arrangements beyond three to five-year duration, on a case-by-case basis and initial down payment may not apply.
  • Necessary legislation to implement 0% interest will be introduced at first opportunity and IRE Tax confirmed it will operate reduced rate on administrative basis in interim.
  • Comment
  • Minister McGrath commented IRE GVT is aware of the ongoing cost pressures faced by businesses and is determined all viable businesses are given every chance to succeed.
  • Acknowledging this, he said he had announced that the interest rate applicable to all of the outstanding warehouse liabilities will be reduced, in the future, from 3% to 0%.
  • He will bring forward the necessary legislation to give effect to this and IRE Tax had confirmed that it will implement the 0% on an administrative basis in the meantime.
  • His department had engaged extensively with IRE Tax on the matter and he welcomed the statement on flexibility on Phased Payment Arrangements in respect of such debt.
  • The key message is businesses should engage with IRE Tax and businesses using the Tax Debt Warehousing scheme will need to engage with Revenue prior to May 1, 2024.
  • Next Steps
  • Businesses using Tax Debt Warehousing scheme have until May 1, 2024 to pay their debt in full, or to engage with IRE Tax to agree a Phased Payment Arrangement (PPA).
  • Businesses are encouraged to engage with IRE Tax at earliest opportunity to discuss their individual circumstances, and to agree arrangements to address their liabilities.

Regulators IRE GVT; IRE Tax
Entity Types Auditor; Corp
Reference PR 2/5/2024
Functions Accounting; Compliance; Financial; Legal; Reporting; Risk; Tax; Treasury
Countries Ireland
Category
State
Products Corporate; Equity
Regions EMEA
Rule Type Final
Rule Date 2/5/2024
Effective Date 5/1/2024
Rule Id 200399
Linked to Rule :150912
Reg. Last Update 2/5/2024
Report Section EU

Last substantive update on 02/08/2024