€12m in tax debt deferred by Cavan firms

Close to 900 Cavan businesses have put off paying in the region of €12 million owed to the Exchequer after availing of mechanisms to warehouse tax debt.

The new figures come to light just as Minister for Finance Michael McGrath announced that the interest rate on tax debt frozen since the pandemic has been cut to 0%.

He made the announcement on Monday, with Revenue also indicating it will take a more flexible approach by allowing pay back arrangements spanning more than five years.

The Tax Debt Warehousing Scheme offered liquidity support to businesses during the pandemic and continues to support businesses as they recover from the impacts of the pandemic and the cost of living crisis.

A significant extension to the scheme, announced in October 2022, means that businesses have until May 1, 2024, to make arrangements to repay their warehoused debt. In advance of the deadline, Revenue is engaging with all customers with debt to discuss their repayment options and come to an agreement.

On average, the 874 local firms to avail of the arrangement owe more than €13,729 each.

By comparison there are 765 Monaghan businesses that owe €15 million between them in unpaid taxes; 423 in Leitrim owing €6 million; and 505 in Longford with a cumulative bill of €9 million.

The majority of companies, who deferred taxes nationally are in the construction industry (9,202); followed by wholesale and retail (8,636); professional, scientific and technical (6,770); accommodation and food (5,586); and then ‘Other Services’ (3,529).

Revenue confirmed the total debt amounting to €1.747 billion is currently warehoused for 57,703 customers, of which almost 70% is for amounts less than €5,000.

The bulk of the debt (€1.5 billion) is warehoused by 5,347 customers, who have outstanding balances greater than €50,000.

The total debt warehoused has decreased by €1.4 billion since January 2022.