Emergency Measures in the Public Interest (Covid-19) Act 2020 section 28D

Covid-19: special warehousing and interest (relevant tax due under section 28B(11))

Section 28D allows employers who owe Revenue an overpayment of Employment Wage Subsidy Scheme (EWSS) amounts to "warehouse" (i.e. defer payment of) that liability, subject to conditions, and sets out the interest rates and consequences that apply during and after the warehousing period.

• Employers affected by Covid-19 who cannot repay EWSS overpayments may warehouse the debt across three defined periods, with no interest during Periods 1 and 2, provided they remain tax-compliant and engage with Revenue to agree a repayment plan before 1 May 2024.
• Employers who engage with the Collector-General before 1 May 2024 and enter into a payment agreement — and who comply with all their tax obligations and the terms of that agreement — pay no interest at all across Periods 1, 2 and 3.
• If an employer fails to comply with tax obligations or does not enter into an agreement with Revenue, simple interest at 0.0219% per day (approximately 8% per annum) applies to the unpaid amount from the date of default or, where no agreement was entered into, from 1 May 2024.
• While the debt is warehoused and the employer remains compliant, Revenue will not enforce collection and the employer can still obtain tax clearance certificates.