Tax Debt and Payment Difficulties
Written in plain language for general understanding. This is educational content, not legal advice. Based on Irish Acts of the Oireachtas, statutory instruments, and official guidance.
Irish National Law
What is this right?
If you owe tax to Revenue and cannot pay it all at once, you have options. Revenue recognises that taxpayers can experience genuine financial difficulties and offers several mechanisms:
- Phased Payment Arrangement (PPA): Revenue can agree to let you pay your tax debt in instalments over an agreed period.
- Interest reduction: If you enter a PPA and comply with its terms, interest may continue to accrue but Revenue takes a pragmatic approach.
- Revenue enforcement: If you ignore your tax debt, Revenue can take enforcement action including sheriff's orders, attachment of earnings/bank accounts, and solicitor's proceedings.
Revenue publishes a Tax Defaulters List quarterly — settlements above €50,000 (where penalties exceed 15% of the total) are published with names.
When does it apply?
- You owe outstanding tax, interest, or penalties and cannot pay in full by the due date.
- This applies to all tax types — income tax, VAT, employer PAYE/PRSI, corporation tax, CGT, etc.
- Revenue is more likely to agree a payment plan if you are up to date with current obligations and make a genuine effort.
- If you are a business experiencing temporary cash flow difficulties, early engagement with Revenue is critical.
What should you do?
- Contact Revenue as early as possible — don't wait for enforcement action. Call the Collector-General's Division or your local Revenue office.
- Propose a payment plan — be realistic about what you can afford. Revenue will assess your ability to pay.
- For larger debts, you may need to provide a statement of affairs showing your income, expenses, and assets.
- If you are genuinely unable to pay (insolvency), consider seeking advice on personal insolvency arrangements (under the Personal Insolvency Act 2012) or company liquidation.
- Revenue's Debt Management Unit can be contacted at 01 738 3663.
What should you NOT do?
- Don't ignore Revenue letters — non-engagement leads to escalated enforcement, including sheriff's orders and court proceedings.
- Don't prioritise other debts over Revenue — Revenue has preferential creditor status in many situations and powerful enforcement tools.
- Don't hide income or assets — this constitutes fraud and can lead to criminal prosecution.
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