Brian Keegan: Ending tax warehousing coupled with high energy bills may be last straw for many businesses

The energy crisis is creating a cash flow dilemma for businesses preparing to repay their warehoused tax bills.

There is an unusually close integration in this country between the tax system and business activity. Not every country insists that individuals and organisations are fully tax-compliant before they can do business in the first place.

A process known as tax clearance ensures that taxes are paid and tax returns are filed up-to-date before any government work is awarded to a business, or before any permits or licences are issued. The sale of fuels and liquor and the operation of restaurants are among the many activities which can only be carried out legally with a licence. A licence will only be granted if a tax clearance certificate issued by the Revenue Commissioners is produced.