More than 7,000 businesses that entered the Revenue Commissioner’s Covid-19 debt warehousing scheme (DWS), representing over €100 million in unpaid taxes, have failed to engage with collectors.
Publishing its annual report on Wednesday, Revenue said the vast majority (97 per cent) of participants were in compliance, leading to about €30 million in monthly collections.
The warehousing of tax debt was introduced as a result of the pandemic and designed to assist businesses that experienced cash-flow and trading difficulties. Under the scheme, they could defer tax liabilities until in a financial position to meet them.
However, the thousands of businesses that did not engage with Revenue before several deadlines up to May, 2024 were removed from the scheme and normal collection practices were applied.
Some of that debt was subsequently settled, some is being actively pursued and some has been deemed uncollectible due to liquidation, examinership, bankruptcy, and business cessation.
Revenue said assisting businesses to exit the warehouse scheme had been a priority and that over 93 per cent of the debt, amounting to €3 billion, included at its peak in January 2022 had now been either settled in full or secured under a phased payment arrangement (PPA). A deadline had been set for May, 2024.
“These results are testament to the pragmatic and flexible approach we adopted in assisting businesses to exit the warehouse,” Revenue chairman Niall Cody said.
Meanwhile, Revenue’s annual report shows total gross receipts during 2024 were €152.9 billion. That included €30.9 billion of non-exchequer receipts collected on behalf of other Government departments and agencies, and other EU States. Net tax receipts during 2024 were €107.1 billion.
“Timely compliance rates remained high across all taxes, at 99 per cent for both large and medium cases and 92 per cent for all other cases,” Mr Cody said. “This is a slight increase on timely compliance rates for 2023, and shows that the vast majority of taxpayers pay the right amount of tax at the right time.”
During 2024 Revenue staff carried out over 272,000 audit and compliance interventions, which yielded €591 million, and closed 256 tax avoidance cases, yielding a further €46 million.
It regards the publication of tax defaulter details and prosecutions as important deterrents to noncompliance. During the year it published details of settlements and court imposed penalties amounting to €32.5 million in respect of 104 taxpayers. It also secured 168 court convictions.
Land owners have also been reminded of the 3 per cent residential zoned land tax (RZLT) which came into force this year. The payment, designed to prompt residential development on land that is zoned and serviced for residential use, will see initial returns and associated liabilities due in May.
In terms of future development, Revenue has said it has considered how the use of Artificial Intelligence (AI) might enhance its processes.
“We also made further progress on our Climate Action Roadmap, continuing the retirement of ageing technology stacks from our estate, reducing our fleet, and consolidating staff into fewer offices.”
