In July 2023 - as announced - the Inland Revenue started sending letters to entrepreneurs asking them to repay their corona debts. Some of the entrepreneurs actually paid in response or sought help with debt restructuring.
In his letter dated 16 October 2023 to the House of Representatives, outgoing State Secretary van Rij (Ministry of Finance) gave an update to the House of Representatives on the results of the so-called corona repayment scheme, which has been in force since 1 October 2022:
About 266,000 entrepreneurs were in this payment scheme on 1 October 2022. Together, they had a tax debt of some €19.6 billion. As of 25 September last, this was still 13.2 billion, due to some of the entrepreneurs paying off their debts in full or meeting the instalments. Some of the originally corona debts have since been 'transferred' to regular supervision.
As of reference date 25 September 2023, the outstanding debt of entrepreneurs still using the payment scheme has been reduced to 13.2 billion. Yet it also shows that after the expiry of 11 months of the payment scheme, about 60,000 entrepreneurs are still (still) struggling to pay arrears, accounting for 4.1 billion in total arrears.
This month, some of this group of entrepreneurs will still have their payment arrangements revoked and a limited group of them have now also been seized by the Tax Administration. Also in November, entrepreneurs with so-called structural arrears will be warned by letter and recovery will follow. Yet there is also positive news, because even after revocation of the payment scheme, submitting a debt restructuring request is still a possibility. If this is not done or not done in time, regular recovery will follow, possibly leading to an attachment or even bankruptcy.
Is your company facing payment arrears under the corona payment scheme, (other) structural debts or has the payment scheme been revoked and you need advice and guidance? The lawyers in our Insolvency & Restructuring team have extensive experience in (tax) reorganisation processes and WHOA proceedings for entrepreneurs. Until 1 April 2024, the temporary relaxation for tax reorganisations still applies, which may offer opportunities (see our message: Granting temporary relaxation of 13 Sept 2023). Get in touch; we will be happy to advise you!
You can read the letter from outgoing State Secretary Van Rij here