€120m of outstanding tax debt 'uncollectable'

Some €120m of outstanding tax debt dating back to the Covid 19 pandemic has been deemed uncollectable by the Revenue Commissioners, according to the Minister for Finance Michael McGrath.

The written-off tax income relates to companies that became insolvent or bankrupt.

Speaking in Brussels, Mr McGrath said a further €200m in "active tax debt" remained outstanding and that 11,700 businesses had been served with notices by Revenue last week.

"They now need to make contact with the Revenue Commissioners, either by phone or online, if they are to avail of the very final opportunity to take advantage of the 0% interest rate that we agreed back in February, and also the enhanced flexibilities," he told reporters.

The minister warned those businesses that "the Revenue Commissioners will go about their work in the normal way, with the normal interest rates applying, and that would make life more difficult for businesses, because the interest rates can be burdensome."

During the pandemic, the Government set up a "tax debt warehousing scheme" that allowed for the deferral of the payment of VAT, Employer PAYE, and certain self-assessed income tax liabilities.