| 13.1°C Dublin

Revenue demand firms reveal staff bonuses before any deal on debts

The Revenue Commissioners are demanding from struggling companies details on the kind of salaries, bonuses and dividends the owners are taking out of their firms before they will do any deals on tax debt.

While the organisation is prepared to do deals allowing companies to repay their debts over several years, the Revenue are looking for more details on how companies are managing their companies before agreeing to deals.

While prepared to be flexible, the Revenue Commissioners still charge interest on the amounts owed and reserve the right to take action against firms who don't "engage'' early with the organisation.

For larger debts over €100,000, companies must provide bank statements, a list of assets, up-to-date management accounts and cash-flow projections.

They must also outline what cost-cutting measures have been taken and what kind of "drawings'' have been taken out of the firm by owners and directors.

The latest document circulated to businesses from Revenue states: "Once the application for a phased payment arrangement is received it will be considered as quickly as possible and any issues requiring clarification will be raised in a timely fashion with the taxpayer.

"A key determinant of the nature of a particular Revenue response to a payment difficulty is that the business concerned is fundamentally viable and that the business or individual concerned shows the capacity and commitment to meet all future tax payments," states the organisation.

"Revenue managers will have due regard to all factors that show the viability of the business and, in relevant cases, capacity to meet the terms of a payment plan and future tax obligations in a timely fashion as those obligations fall due.

"The extent of the room for manoeuvre by a manager is significantly influenced by the level and timeliness of meaningful engagement," it adds.

Indo Business