In launching Revenue’s 2018 Annual Report, Chairman of the Revenue Commissioners, Niall Cody noted that “through [Revenue’s] new Debt Management Service, we provide easy to use phased payment facilities for taxpayers who work with us to resolve their payment difficulties.” However, initial feedback from members of Chartered Accountants Ireland raises concerns on the inflexibility of the new system along with issues with a reduced threshold of tax debt for informal repayment arrangements.

We have worked with Revenue in addressing members’ concerns and we can confirm that efficiencies in the process have been agreed – if the debt is under €5,000, rather than completing four separate forms to apply for the scheme, only the following sections of Form ePPA1 need to be completed:

• 1A – Business details
• 2A – Repayment Capacity/Lending Commitments
• 2C – How the proposed repayment will be serviced
• the Declaration.

In addition, no supporting documentation is required at application stage; but may be sought by a Revenue case worker on review.

This reduction in the number of forms required should reduce the administrative burden in the application process for debts under €5,000. For anyone who is currently in the process of completing an application for a debt of less than €5,000, Revenue has advised taxpayers to contact them in order to avail of the new reduced application process.

Revenue also confirmed that the online system does provide a facility for negotiations in agreeing down payments. Currently the default amount required as a down-payment is 25 percent. However Revenue will consider a phased payment proposal along with other deviations from the defaults on the online system on a case by case basis. When a taxpayer is looking for tax clearance the down-payment must be 40 percent of the debt.

Additionally, Revenue asked us to highlight some of the features of the system; namely that a debt arrangement agreement entered into will be formally recorded on the online system. Payment reminders will electronically issue to taxpayers reducing the risk of missing a payment and taxpayers have the flexibility to change payment dates, defer a payment or seek a payment break (all online).

The Agent’s Guide to the Collector-General’s Division Tax and Duty Manual has been updated to include information for taxpayers about how requests for phased payment arrangements should be made.