Companies

Relaxing rules on warehoused Covid tax debt will not be enough to save some businesses

The government had little option but to relax rules around Covid-19 tax debt as its employee reforms are already a massive problem for small businesses

Businesses owe Revenue €1.75 billion in tax debt that was warehoused during the Covid-19 pandemic. Picture: Fergal Phillips

Caught between an expensive rock and a costly hard place, struggling businesses will have taken some comfort from the news that Revenue will relax the rules related to its debt warehousing scheme.

Michael McGrath stated the blindingly obvious when he told RTÉ Radio 1’s Morning Ireland he recognised that cashflow was “tight” for many companies. Fear not, was his message – the government knows things are difficult, and it’s here to help.

What the finance minister ...