Tax

Debt Warehousing Scheme Self-Review Deadline - 31 January 2023

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Debt Warehouse Scheme: deadline fast approaching
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In September 2022 Revenue contacted all taxpayers who partook in the Debt Warehousing Scheme (“DWS”) as well as those for whom the DWS was automatically made available (taxpayers in Revenue’s Business and Personal Divisions) but who did not avail of the scheme.

All eligible taxpayers were offered the opportunity to self-review their tax returns and be in a position to avail of the benefits of making an unprompted qualifying disclosure in respect of any additional tax liabilities identified as part of the self-review.

These liabilities would then be eligible for DWS and benefit from a 0% rate of interest up until the end of Period 2 (31 December 2022 or 30 April 2023 where extension applied) and a reduced 3% rate of interest via a Phased Payment Arrangement (“PPA”) thereafter.

This opportunity to undertake a self-review as part of the DWS is, in our view, consistent with the culture of self-review that Revenue are actively and consistently incentivising taxpayers to cultivate within their businesses.

Deadline

The deadline for making this unprompted qualifying disclosure is 31 January 2023.

This deadline offers a final opportunity for those eligible for DWS to regularise their tax returns for any undeclared tax liabilities.  Once the deadline has passed, should Revenue identify any tax defaults during the DWS period, the taxpayer will become immediately ineligible for the DWS and all outstanding liabilities may be subject to immediate collection with the standard 8 - 10% rates of interest applying with the further possibility of penalties also arising.

Actions Required

We strongly encourage all taxpayers to undertake a self-review immediately in order to identify any issues which may need to be disclosed to Revenue and where possible be included under the terms of the DWS. 

Please refer to our previous insight for more detail on the taxpayers affected and the time periods involved.

At Grant Thornton, we have a specialist team that can work with you to review your tax affairs, assist you with availing of the DWS, preparing your unprompted qualifying disclosure and structuring your PPA, and offer sensible guidance and support on managing a Revenue Intervention.