Installment Plan with Revenue Sherrif

[mummol]

This does not relate to me directly but seeking clarification.

Company has tax arrears. Got revenue sherriff letter, just paid most recent returns. Not in a position to pay arrears in one shot. Willing to enter into an installment plan.

However, if at any stage over this period if the company was to close/liquidate what are the repercussions of having entered into a plan with revenue and not being able to fulfil it. This imo is a v real possibility as the company is in last chance saloon. Owners reluctant to close as its their main liviliehood

 

[Joe_90]

Think they have to arrange an installments agreement with Revenue. There will be a deposit then the balance over a period of time. The current returns have to be filed and paid on time. There is supporting documentation to be submitted in support of the application.

If the company looks doomed Revenue may not agree to installment agreement. But there is a balance to be struck between giving a business a chance and getting something or forcing the situation and getting nothing. Talk to revenue about arrears ignoring letters and getting sheriffs letters is not the right course of action.

 

[Dave K]

If, this has gone to the sheriff it is too late to enter into any instalment arrangement with Revenue unfortunately. The Sheriff will in 99% of cases agree to an instalment arrangement. If the company goes into liquidation the debt is just returned to Revenue as "uncollectable" and the liquidation process continues as normal. Sheriffs fees will be taken out of the first payment/s made, any balance for fees is unsecured debt like any other creditor. Obvious considerations need to be taken into account about the potential liquidation, potentially trading while insolvent etc, plenty of posts on the site about same.