427. Deputy Jennifer Whitmore asked the Tánaiste and Minister for Finance if he will consider greater flexibility in repayment arrangements for businesses with warehoused tax debt, including extending or restructuring payment plans where necessary to prevent otherwise viable small businesses being forced to close; and if he will make a statement on the matter. [65726/26]

I am advised that Revenue’s clear preference is to always work with taxpayers experiencing cash-flow difficulties and to identify and agree mutually acceptable payment solutions, and to avoid deploying debt collection/enforcement sanctions. Revenue encourages taxpayers to engage early when payment difficulties arise and has a strong track record of successfully working with individuals and viable businesses to resolve their payment difficulties.

Revenue’s track record in working and supporting business was very clearly demonstrated in 2024 with the closure of the debt warehousing scheme where Revenue worked with businesses to agree flexible Phased Payment Arrangements (PPAs) to meet their individual circumstances. The vast majority of the 12,700 PPAs set up to pay warehoused debt are being maintained, with payments of approximately €20 million being collected each month to date. This is testament to the pragmatic and flexible approach Revenue adopted in assisting businesses to exit the warehouse. That flexible and supportive approach continues today in a post warehouse environment.

Revenue’s online PPA facility is an easy-to-use service for individuals or businesses who need to pay tax debt on a phased basis. Once the arrangement is in place, the facility includes several flexibilities to manage temporary payment difficulties that might arise during the term of the arrangement. These include options to take a payment break of up to 12 months, defer the next payment due up to three times during the arrangement, amend the payment date and amend the monthly payment amounts. Depending on the circumstances presented, restructuring of the PPA may include additional debt to alleviate immediate cash flow difficulties, with the PPA extended beyond the standard duration.

The full range of these flexibilities is available to businesses with warehoused debt who may experience temporary cash flow difficulties during the term of the payment arrangement. Revenue continues to highlight these supports with practitioner bodies and taxpayers, in an effort to support taxpayers to maintain their payment arrangements and in particular retain the very important 0% interest rate on warehoused debt. The important message for those businesses is to engage as early as possible with Revenue to discuss their payment difficulty and to agree the most appropriate flexibility or restructuring required for their arrangement.

As always, Revenue’s preference is to agree realistic payment plans with businesses suitable to their specific circumstances that will enable the business to continue to pay their warehoused debt at 0% interest rate over an acceptable period of time.

Importantly, I am further advised by Revenue that where a PPA continues to be in place for outstanding tax debt and scheduled monthly payments are honoured, tax clearance is maintained enabling the business to avail of certain grants and public sector contracts where applicable and ensuring valuable cash flows are protected to the greatest extent possible.