SFA Calls for a bespoke arrangement on Debt Tax Warehousing for Small Business
The policy of Tax Debt warehousing was highly successful in freeing up cash flow during a time when trading was severely curtailed during Covid mandated lockdowns. As the emergency phase of the pandemic has now drawn to a close, businesses are back open and trading under what is still very difficult conditions. The cost of doing business for small firms continues to rise at an alarming rate, this along with price increases due to the Russian invasion of Ukraine has put renewed pressure on many.
Geraldine Magnier, Director of Idiro Analytics and SFA National Council Deputy Chair said: “While tax warehousing was invaluable to many, it will not be as simple to pay back for many small firms. There needs to be individualised engagement with small businesses by the Revenue Commissioners to ensure many small firms remain viable into the future”. The Small Firms Association has called for the following measures to be adopted:
- Bespoke engagement between businesses and revenue on issues arising.
- A fixed minimum repayment period of between 2 and 3 years.
- Extension of 0% interest for the entirety of the warehouse period to clear capital debt quickly
“We at the SFA believe that if the above measures are adopted by Government that not only will the Exchequer get its return, small businesses who are the backbone of the Irish economy will continue to trade effectively and continue to create jobs across all regions of Ireland” Ms Magnier concluded.