Revenue Tax Warehousing Scheme

A crucial aspect of this initiative is the deadline set by the Revenue, which is the 30th of April, 2024.

The recent announcement by the Minister for Finance regarding amendments to the Revenue tax warehousing scheme was met with widespread approval from the business community. It was confirmed that, under this revised scheme, no interest will be charged on the amounts of tax that are warehoused. Moreover, the terms for repayment are now more flexible, with a standard period of five years being offered, and in certain cases, even longer repayment terms will be considered, providing much-needed relief to businesses.

To avail of this arrangement, businesses must engage in a phased payment agreement with the Revenue. This is a streamlined process through the Revenue Online Service (ROS) website, where an automated system is in place to facilitate these arrangements. To complete this process, taxpayers are required to submit specific supporting documents. The nature and extent of these documents vary based on the total debt amount. For larger debts, this could include items such as bank statements, management accounts, and detailed cash flow forecasts, ensuring a thorough evaluation by the Revenue.

A crucial aspect of this initiative is the deadline set by the Revenue, which is the 30th of April, 2024. Taxpayers are urged to formalise their payment arrangements by this date. Failing to meet this deadline will lead to the imposition of interest and penalties on the warehoused tax amounts, which could significantly affect a business's financial health. Furthermore, compliance with these terms, while also keeping current tax payments up to date, is essential for maintaining one's tax clearance status. This status is not only indicative of a business's fiscal responsibility but is also a critical factor when seeking bank financing and engaging in various business activities.

It is also imperative to note that the ability to set up a phased payment arrangement is contingent upon the taxpayer having no outstanding tax returns. This encompasses all forms of tax documentation, including for example VAT RTDs and Form 1 Firms. Maintaining compliance with tax return submissions is therefore essential for businesses wishing to take advantage of this scheme.