Hardest-hit firms to be given up to a decade to repay pandemic tax debt

Companies will be given a further three to five years to repay Revenue as government seeks to prevent further closures of small businesses

The final terms of the scheme have yet to be signed off on by Minister for Finance Michael McGrath. Picture: Barry Cronin

Businesses struggling with pandemic-era tax debt will be given almost a decade to repay Revenue as part of plans being drawn up by the government to prevent a wave of small company closures, the Business Post can reveal.

The Department of Finance and Revenue are planning to make revisions to the debt warehousing scheme, which allowed firms to defer repayment of certain tax debts during the Covid-19 pandemic.

Officials are working on changes that will give companies between three and five extra years to finish paying off these debts, the Business Post has learned, as thousands of companies around the country battle debts of more than €50,000.