Update from Revenue re tax liabilities

Update from Revenue re tax liabilities

Revenue plan to ‘warehouse’ businesses’ VAT and Payroll tax liabilities. The measure is to apply to businesses in sectors of the economy who have been negatively impacted by COVID-19.

This is part of the range of economic measures announced by the Minister for Finance recently. See link below for further details.

See here to learn more.

There is no legislation yet and the detail will be important. We just have to look at the announcement of the Temporary Wage Subsidy Scheme before legislation and the confusion it caused. This isn’t meant in any way as a slight against Revenue or the Department of Finance. I think they deserve massive credit for all they have done to date. The operational details are being finalised and the necessary legislative amendments will be brought forward in Finance Bill 2020 according to the Department of Finance.  

Revenue have confirmed the following:

  • COVID-19 related VAT and Payroll tax debts, due from 1 March 2020 to the date when sectoral restrictions are lifted, will be parked for a period of 12 months
  • no interest will accrue on the tax debts during the 12-month period
  • thereafter, the COVID-19 related tax debts will carry a reduced interest rate of 3% (down from 10%), until the debt is paid
  • the timeframe allowed to pay the ‘warehoused’ debt will be flexible and determined by the ability of the business to pay both COVID-19 related debts as well meeting its ongoing tax liabilities as they arise in the normal course
  • for the warehousing arrangement to apply, all returns must be filed in accordance with the Revenue guidance that has applied since the start of the current pandemic.

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Joe Cunnane Practice Owner TRA Professional Services       Qualifications:  FCA Chartered Accountant & AITI Chartered Tax Advisor Joe has over 20 years experience working in both private practice and industry ... Read More »