Interest suspension arrangements for businesses
Revenue suspended debt collection and the charging of interest on late payment for the January/February 2020 and March/April 2020 VAT periods and February 2020, March 2020 and April 2020 PAYE (Employer) liabilities. These arrangements are further extended to include May/June 2020 VAT and May 2020 and June 2020 PAYE (Employer) liabilities.
'Warehousing' of COVID-19 related tax debt for businesses
On 2 May 2020, the Government announced that it will legislate to provide that Revenue will warehouse deferred tax debts associated with the Covid-19 crisis.
The proposed scheme will involve the effective parking of the unpaid VAT and PAYE (tax debts that arose from the Covid-19 crisis), for a period of 12 months after a business resumes trading and the application of a lower interest rate of 3% per annum on the repayment of such warehoused tax debts after that date.
The necessary legislative amendments will be brought forward in due course. Pending the enactment of the necessary legislation, Revenue will operate the arrangements on an administrative basis.
The period covered by the arrangements is the duration of time during which the business was and is unable to trade, or was and is trading at a significantly reduced level, due to the Covid-19 related restrictions and includes two months after the business re-commences ‘normal’ trading.
The tax debts covered are VAT and PAYE (Employer) debts from the ‘Covid-19 restricted trading’ period. These are the tax debts that have been subject to the suspension of debt enforcement outlined above. (Tax debts before and after this period will not be included in the warehousing arrangement.)
There will be three periods in the scheme.
More information is available at www.revenue.ie and at New 'warehousing' of deferred tax debts and interest suspension arrangements.
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