Almost 10,000 phased payment arrangements (PPAs) were agreed by the tax authority after April 1, covering another €973m of warehoused debt.
The scheme, which is now ended, allowed businesses to defer tax on an interest-free basis as a way of helping them survive the pandemic. At its peak in January 2022, there was €3.2bn in the warehouse.
Just over 93pc of that total has now either been paid off, is part of a PPA, or is the subject of ongoing negotiations with tax officials.
Revenue says it issued demands to about 11,700 businesses that had debt in the warehouse but had not engaged with them before the deadline of May 1. About 40pc of the businesses then engaged.
The other 7,024 businesses, with a total debt of €100.56m, have been taken out of the warehouse. Of these, 164 have outstanding balances greater than €100,000. That debt will now be subject the usual collection and enforcement proceedings, with interest at the standard rate of 8pc or 10pc being levied.
Revenue says work is continuing to secure payment of another €80m of warehouse debt, either through negotiations or dealing with refund or credit claims. “This figure is dynamic and will reduce on a daily basis as payment arrangements are agreed,” it says.
About €120m has been categorised as uncollectable. This is because, at various stages during the warehouse scheme, about 1,500 businesses exited for reasons such as liquidation, bankruptcy or examinership.
Minister for Finance Michael McGrath noted that €284m in warehoused debt had been paid since the beginning of this year. He said the scheme had supported viable businesses and jobs “during an unprecedented and exceptionally difficult trading environment”, and had offered valuable liquidity support to firms “by assisting with their cash flow, thereby preventing business failure”.
Revenue’s report shows that the retail trade has the highest proportion of businesses in PPAs, at 17pc. Companies represent about two-thirds of debtors, while there are 2,243 taxpayers in PPAs who owe more than €100,000.
While 95pc of the PPAs will be completed within the standard five years, Revenue has allowed 600 of them to be stretched out over longer time frames.
“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,” it said.
