Royal Canal Financial Control Services

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Delays in Redundancy Rebates Against Tax Liabilities

The official position from Revenue is as follows:

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.