More than €2bn in taxes still owed by more than 62,000 firms

Debt Warehousing Scheme was brought in during the pandemic to support businesses through lockdown measures

12,800 customers with warehoused debt of €197m have had their warehouse status revoked due to non-compliance with repayments.

Nearly all of the tax debt warehoused by companies during the pandemic has been paid off. However, some businesses have been stung as they have not been able to pay their liabilities on time.

At end of April, more than 93% of the debt that was housed in the Debt Warehousing Scheme has been paid, leaving a balance of more than €2bn for about 62,000 individual entities.

However, 12,800 customers with warehoused debt of €197m have had their warehouse status revoked due to non-compliance with repayments.

In answer of a question in the Dáil recently, Finance Minister Michael McGrath said where a business addresses their non-compliance issues and brings its current taxes up to date, the business can have its warehouse status reinstated.

At the end of February, 338 of the revoked cases have had their warehouse status reinstated, in respect of €20m debt.

The scheme was brought in during the pandemic to support businesses through lockdown measures. It allowed for the deferral of the payment of Vat, employer PAYE and certain self-assessed income tax liabilities, including EWSS overpayments.

“It provided a vital liquidity support to businesses during the covid pandemic and continues to support businesses as they recover from the impacts of the pandemic and the current energy crisis,” said Mr McGrath.

The scheme allowed for the parking of the debt at 0% up to December 31, 2022, or April 30, 2023, for those in the extended scheme.

A reduced interest rate of 3%, as opposed to the general interest rate of 10%, applies from January 1, 2023, on the warehoused debt, or from May 1 for those in the extended scheme.

Those who have been kicked out of the scheme are vulnerable to paying back liabilities at the 10% interest rate.

The total debt eligible for the Debt Warehousing Scheme since its introduction is €31bn, with more than 250,000 businesses eligible to avail of the scheme, according to Revenue.

The bulk of the debt figure is warehoused by 6,271 customers, with outstanding balances greater than €50,000, totalling about €1.7bn.

Wholesale and retail trade as well as hospitality were the sectors that have used the scheme the most.