Tax Warehouse Payments are Due on 1 May 2024


Tax Warehouse Payments are Due on 1 May 2024

On February 5th, 2024, the Minister for Finance declared that the interest rate applicable to warehoused debt would be reduced to 0%. This significant development aims to alleviate financial burdens on businesses, offering relief during these challenging times.

Revenue has confirmed its commitment to implementing the reduced interest rate on an administrative basis until legislative changes are enacted. Additionally, businesses will receive refunds for any interest paid at the previous rate of 3% on warehoused debt. This gesture underscores Revenue’s dedication to supporting businesses through flexible and pragmatic measures.

With the deadline for Tax Warehouse Payments approaching on May 1st, 2024, businesses availing of the Debt Warehousing Scheme have two options:

  1. Pay their warehoused debt in full, if feasible.
  2. Engage with Revenue to address the debt, including setting up arrangements for a Phased Payment Arrangement (PPA).

Revenue assures businesses of flexibility in managing their payment obligations. This includes determining the initial down payment, extending the payment duration, and providing options for payment breaks or deferrals in case of temporary cash flow difficulties.

It is imperative to stay updated on current returns and payments and to proactively engage with Revenue regarding your warehoused debt. By remaining in the Debt Warehouse, businesses benefit from the 0% interest rate and flexible payment options. However, failure to meet the conditions may result in removal from the warehouse, leading to immediate repayment requirements, potential enforcement actions, and higher interest charges ranging from 8% to 10% per annum.

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