Government removes interest charged on warehoused tax debt

The decision will benefit more than 57,000 companies with tax outstanding since the Covid era.
Government removes interest charged on warehoused tax debt

The interest rate on warehoused tax debt has been reduced to 0 per cent.

The decision will benefit more than 57,000 companies with tax outstanding since the Covid era.

In a parallel move on Monday, the Revenue said it would repay any interest companies had already paid since the 3 per cent annual interest charge was imposed on warehoused debt.

The Tax Debt Warehousing Scheme was introduced for businesses following the Covid-19 pandemic.

It aimed to help businesses with cash flow problems, by allowing them to defer paying some tax liabilities until they were in a position to address the debt.

Some €1.7 billion is currently owed under the scheme.

The move follows warnings from business lobby groups that demands for such taxes to paid could lead many small and medium-sized companies into insolvency.

“This Government is acutely aware of the ongoing cost pressures faced by businesses and is determined that viable businesses are given every chance to succeed in a challenging trading environment,” Minister for Finance Michael McGrath said in a statement.

More in this section

Girls in single sex schools want more options to study STEM subjects, report shows Girls in single sex schools want more options to study STEM subjects, report shows
Wicklow man branded a 'monster' sentenced to three years for indecent assault of young girl Wicklow man branded a 'monster' sentenced to three years for indecent assault of young girl
Winter weather Jan 24th 2025 Storm Éowyn report recommends cancelling events under orange wind warnings

Sponsored Content

Every stone tells a story Every stone tells a story
Absolute Property – Over a quarter century of property expertise Absolute Property – Over a quarter century of property expertise
Stay Radisson: Stay Sligo, Limerick, Athlone and Cork Stay Radisson: Stay Sligo, Limerick, Athlone and Cork
Contact Us Cookie Policy Privacy Policy Terms and Conditions

© Examiner Echo Group Limited

Add Echolive.ie to your home screen - easy access to Cork news, views, sport and more