Tax debt warehousing scheme: file returns or risk losing scheme, tax clearance and EWSS & CRSS

This week Revenue will write to taxpayers availing of the tax debt warehousing scheme. The letters cover taxpayers whose tax returns are up to date, taxpayers with outstanding tax returns and taxpayers with outstanding tax returns who are also claiming the Employment Wage Subsidy Scheme (EWSS) and/or the Covid Restriction Support Scheme (CRSS). Revenue warns taxpayers who do not keep up to date with tax compliance that they risk having the favourable tax debt arrangement withdrawn, losing their tax clearance and having EWSS and CRSS payments stopped.

The letters will begin to arrive in ROS inboxes this week, and hardcopy letters will also issue. Revenue provided Chartered Accountants Ireland with copies of the letters as follows:

• Letter to taxpayers with all returns filed with details of the debt warehoused to date
• Letter to taxpayers with returns outstanding and details of debt warehoused and the returns outstanding
• Letter to taxpayers with returns outstanding and availing of CRSS or EWSS or both and details of debt warehoused and the returns outstanding.

Taxpayers with outstanding returns are advised to take immediate action and those availing of the EWSS and/or CRSS must file outstanding returns within 21 days of the date of the Revenue letter.

Approximately 70,000 businesses are currently availing of the tax debt warehousing scheme, which covers €1.9 billion in tax debt. In a press release issued earlier this month, Revenue warned that the 28,700 businesses not keeping up to date with their tax compliance risk having the favourable tax debt arrangements withdrawn and also risk having tax clearance withdrawn and EWSS/CRSS payments stopped.