Dáil Éireann Debate, Thursday - 7 November 2024
52. Deputy Richard Bruton asked the Minister for Finance if an analysis of VAT returns reveals a pattern of a difficult time for small high-street businesses in the form of trends in yields, business closures or payment difficulties; and if he will make a statement on the matter. [45435/24]
Amharc ar fhreagraI am advised by Revenue that the periodic VAT returns represent a high-level summary in respect of VAT payable and/or VAT reclaimable and do not provide sufficiently detailed data to support the type of analysis sought by the Deputy.
Regarding payment difficulties, Revenue’s clear preference is always to engage with taxpayers and businesses, and, where possible, to agree mutually acceptable payment arrangements in preference to deploying debt collection/enforcement sanctions. Revenue has a strong track record of successfully working with individuals and businesses to resolve their payment difficulties. In most cases, a mutually satisfactory solution is found without resorting to enforcement action. For example, taxpayers can enter into a Phased Payment Arrangement to pay off their debt in instalments over a period of time.
On completion of the Debt Warehousing Scheme in May 2024, over 12,700 Phased Payment Arrangements were agreed with taxpayers to secure a total of €1.2 billion of tax debt. I am advised by Revenue that this is the highest ever number of payment arrangements. The vast majority of these arrangements are still in place and being serviced by customers.
I am also advised by Revenue that, while the number of insolvencies to date this year has risen in comparison with the last few years, it is back to the levels that applied in 2018/2019.
