# Offset 60% redundancy rebate against tax liabilities due



## Mairin (28 Apr 2009)

Direct from Minister for Finance (Deputy Brian Lenihan) 
I am, however, advised by Revenue that where a business is awaiting a statutory redundancy rebate and it is experiencing particular difficulties in meeting its tax payment obligations because of a delay in receiving the repayment, then subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring for a reasonable period collection or enforcement action that would otherwise ensue in the event of delayed payment of tax. 

Has anyone any idea how this works in reality? I email the CG's office in Limerick and I got the same message back, in different words but not procedures to be followed. I emailed the Institute of Taxation and they haven't got back to me. In need of informaton asap so anyone who knows, please advise.


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## papervalue (9 May 2009)

Mairin said:


> Direct from Minister for Finance (Deputy Brian Lenihan)
> I am, however, advised by Revenue that where a business is awaiting a statutory redundancy rebate and it is experiencing particular difficulties in meeting its tax payment obligations because of a delay in receiving the repayment, then subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring for a reasonable period collection or enforcement action that would otherwise ensue in the event of delayed payment of tax.
> 
> Has anyone any idea how this works in reality? I email the CG's office in Limerick and I got the same message back, in different words but not procedures to be followed. I emailed the Institute of Taxation and they haven't got back to me. In need of informaton asap so anyone who knows, please advise.


 
In reality what i think would happen is you contact debt management in limerick and ask them to put an attachment on the rebate- what happens is the revenue would get the rebate directly from enterprise department and them offset it against the various taxes due.

at least with an attachment they are guaranteed payment.

I have seem them useing above method if a company is owed money from county council for work done- council give money to revenue instead of company.


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## Mairin (19 May 2009)

Finally got official response:

Offset of redundancy rebate against tax due

In recognition of the delays that can arise in the issue of the 60% rebate on statutory redundancy payments paid by the Department of Enterprise, Trade and Employment (DETE), Revenue have clarified that where a business is awaiting a statutory rebate and it is experiencing particular difficulties in meeting its tax obligations because of a delay in receiving the repayment then, subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring for a reasonable period collection or enforcement action that would otherwise ensue in the event of delayed payment of tax. In order to effect the offset, the employer needs to write to DETE authorizing them to pay the redundancy rebate to Revenue.  A copy of this letter should be sent to the Collector General's Office.  Following receipt of this letter, Revenue will confirm the details of the redundancy rebate with DETE directly and determine whether it is acceptable.


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