Wednesday 23 October 2019

Revenue refuses to lift debt system level

Revenue refused a request from accountants to change the cut-off point of a new debt management system for SMEs from €500 to €5,000. (Stock picture)
Revenue refused a request from accountants to change the cut-off point of a new debt management system for SMEs from €500 to €5,000. (Stock picture)
Samantha McCaughren

Samantha McCaughren

Revenue refused a request from accountants to change the cut-off point of a new debt management system for SMEs from €500 to €5,000.

The new system was introduced in March and aims to chase smaller debts with the help of technology. At the time a Revenue spokesman said the "system will enable Revenue to review customers with lower turnovers on a more regular basis."

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However, tax practitioners raised concerns that the system would remove the opportunity for informal repayment arrangements for debts of €5,000 or less. It is understood a considerable amount of documentation had to be uploaded.

Revenue did not lift the limit from €500 but did reduce the amount of information required from firms.

New figures from Revenue show that, as of August, 308,600 demands/estimates had been issued.

Some 179,080 final demands had been issued resulting in 48,013 enforcement decisions. The online phased payment system received 2,936 applicants, of which 2,192 had been approved, 697 refused and the balance were under negotiation.

"Revenue has a strong track record of successfully working with businesses and individuals who engage early with us to resolve their payment difficulties," said a spokesman.

Sunday Indo Business

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