Revenue publishes Statistical Report on the Debt Warehouse Scheme

Today, (05/06/2024), Revenue published its detailed statistical report on the Debt Warehouse Scheme. The report shows that just over 93% of the €3.2 billion debt included in the warehouse at its peak in January 2022 has now been either paid in full, secured under a phased payment arrangement (PPA) or is subject to ongoing PPA negotiations or refunds/credit claims awaiting approval for offset.

The report also demonstrates the significant level of engagement with Revenue in the weeks leading up to the 1 May 2024 deadline with €100 million of warehoused debt being collected in May, and 9,987 PPAs, covering €973 million of warehoused debt, being secured after 1 April.

PPAs already agreed cover almost €1.2 billion of warehoused debt owed by 12,747 businesses. The majority of these PPAs (95%) will be completed within the standard five year period, while the remaining 600 PPAs have been agreed for extended timeframes. This additional flexibility was agreed by Revenue based on individual circumstances and where the business concerned was able to demonstrate it future viability.

Revenue will monitor compliance with the terms of PPAs, and businesses availing of PPAs are reminded that in order to continue availing of the 0% interest rate, all current returns and liabilities should be submitted and paid on time. Where businesses are struggling to pay current taxes, the advice remains to engage with Revenue as soon as these difficulties arise, so that a mutually acceptable solution can be found. Revenue’s online PPA facility provides considerable flexibility to avail of payment breaks and payment deferrals if temporary cash flow difficulties arise during the arrangement term.

As previously outlined on 9 May 2024, Revenue issued demands to approximately 11,700 businesses that had debt in the warehouse but had not engaged with Revenue to address this debt ahead of the key deadline of 1 May 2024. Almost 40% of businesses that received this demand engaged with Revenue on foot of same. The remaining 7,024 businesses, with a total debt of €100 million, did not engage and have now been removed from the warehouse. This debt is now subject to normal collection and enforcement proceedings, and is subject to interest at the standard rate of 8% or 10% as appropriate.

[ENDS 05/06/2024]