Dáil Éireann Debate, Wednesday - 30 September 2026
25. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance if Revenue has examined the potential for a more graduated or staged approach to late payment, including models such as the United Kingdom’s penalty points system; and whether current debt collection practices remain aligned with the principles set out in the Report of the Sheriff Review Group. [68993/26]
Amharc ar fhreagra26. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance to outline the current procedures used by the Revenue Commissioners to ensure direct engagement with taxpayers prior to the referral of tax debts to the sheriff; the criteria or evidence required by Revenue to determine that meaningful engagement has been attempted; and if an analysis has been conducted in recent years on trends in the volume and timing of such referrals. [68991/26]
Amharc ar fhreagraI propose to take Questions Nos. 25 and 26 together.
I am advised that Revenue’s strong preference is to engage constructively with taxpayers who are experiencing temporary cash-flow difficulties and, where possible, to agree mutually acceptable payment solutions, including Phased Payment Arrangements (PPAs) where appropriate, rather than resorting to debt collection or enforcement measures. Revenue encourages taxpayers to engage early when payment difficulties arise and has a proven track record of supporting individuals and viable businesses to resolve their payment difficulties.
Revenue has confirmed to me that it implements a graduated and staged approach within its standard debt collection procedures, whereby taxpayers are afforded several opportunities to address their payment issues and to engage with Revenue before enforcement is actioned. Where taxes become overdue in line with statutory deadlines, a request for payment issues shortly after the due date. This includes details of the tax(es) due and requests payment within a set timeframe. The request for payment also outlines the consequences of continued non-payment and affords the taxpayer up to 10 days to engage. In most cases, on receipt of this initial notice, the taxpayer will either make full payment for the due tax or contact Revenue to agree the payment of the tax within a mutually acceptable timeframe, at which point no further action is required.
However, in the absence of taxpayer engagement, a further notice is issued in the form of a Final Demand, again highlighting the risk of enforcement action and allowing a further seven days for the taxpayer to engage. It is only where there is continued lack of engagement from the taxpayer in response to this Final Demand and after the expiry of the time allowed, that the case is escalated for enforcement action.
Any taxpayer experiencing temporary cashflow difficulties that impact on their ability to meet their tax obligations on a timely basis, including scheduled monthly payments, should engage with Revenue at the earliest opportunity. I am assured by Revenue that they will always work with individuals and viable businesses to agree mutually acceptable payment solutions, such as a payment deferral or a payment break, rather than deploying debt collection and enforcement options. However, where a business or individual fails to engage in any meaningful way, then Revenue has no alternative but to exercise its enforcement powers in order to protect the Exchequer and to maintain a level playing field for the vast majority of taxpayers who meet their tax obligations on time. Revenue assesses whether meaningful engagement has been attempted on a case?by?case basis, there is no set or prescriptive criteria. Taxpayers are expected to engage proactively and transparently with Revenue in relation to the discharge of their tax liabilities. This approach ensures fairness and a level playing field for those taxpayers who meet their tax obligations by the statutory due dates.
While Revenue has not specifically considered the UK points system, I am advised that Revenue keeps its debt collection framework under continuous review and that it engages with international tax administrations and participates in relevant international fora as part of this work. Revenue is satisfied that its current debt collection procedures, including but not limited to enforcement through Sheriffs, remain fair, proportionate and effective.
Revenue monitors all stages of the debt collection cycle on a weekly basis, including numbers of referrals to enforcement agencies and investigates any unexpected trends immediately. Revenue publishes data on referrals to enforcement agencies, including yield, in its Annual Report and this year published a paper on Securing the Compliance Dividend from Standard Enforcement. The Sheriff Review Group Report focuses on the Sheriff service as one element within the wider debt enforcement system. It does not review Revenue’s broader debt collection practices, such as, the use solicitors or attachment orders.
The report confirms that the Sheriff service is an effective and efficient enforcement mechanism used by Revenue. Revenue’s use of Sheriffs and other collection methods reflect the principles emphasised by the Review Group report i.e. effectiveness and efficiency in enforcement, fairness and proportionality in dealing with taxpayers, transparency and accountability and a strong preference for engagement and agreed solutions ahead of enforcement action.
