The Minister for Finance, Michael McGrath TD, recently announced that, after much engagement with Revenue, the interest rate applicable to all debts housed under the debt warehousing scheme during period 3 will be reduced from 3% to 0%. 

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For most taxpayers, period 3 of the scheme would have commenced on the 1st of January 2023 and the news is a welcome development for taxpayers.

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It was also announced that any interest already paid by taxpayers under the warehousing scheme will be refunded by Revenue.

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Revenue have recently reiterated the importance of taxpayers engaging with Revenue prior to the 1st of May in respect of warehoused tax debt that will not be paid before this date. 

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Revenue have advised that businesses will be afforded every possible flexibility to satisfy any warehoused debt, including. 

• The level of the initial down payment at the outset
• Extended payment durations
• The availability of payment breaks and payment deferrals if taxpayers experience temporary cash flow difficulties.

It is important to note that taxpayers must continue to file all current tax returns and pay all current tax liabilities as they fall due, otherwise the benefits of the debt warehousing scheme will be lost.

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If you require assistance with any debt warehousing issues, please do not hesitate to contact a member of the tax team at Cooney Carey.

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Reach out to our team of experts for more information at info@cooneycarey.ie.