Legal Firms to Receive €30m for Debt Recovery – Ireland
- The Revenue Commissioners will spend an estimated €30 million over the next six years engaging legal firms to recover outstanding tax debts through the Irish court system.
- The Revenue Commissioners are intensifying their efforts to recover tax debts through the Irish court system.
- According to the tender, "a major portion of the remuneration of the appointed solicitor firms will be in the form of commission expressed as a percentage of amounts...
“`html
Revenue Commissioners to allocate €30 Million to legal Firms for Tax Debt Recovery
Table of Contents
The Revenue Commissioners will spend an estimated €30 million over the next six years engaging legal firms to recover outstanding tax debts through the Irish court system. This initiative aims to significantly increase tax recovery rates by incentivizing firms with commission-based remuneration.
Revenue Commissioners Increase Focus on Court-Based Tax Recovery
The Revenue Commissioners are intensifying their efforts to recover tax debts through the Irish court system. Tender documentation released by the Revenue indicates a meaningful financial commitment to legal firms specializing in debt recovery. The core of this strategy involves a commission-based payment structure, directly linking legal fees to the amount of tax successfully recovered.
According to the tender, “a major portion of the remuneration of the appointed solicitor firms will be in the form of commission expressed as a percentage of amounts collected.” This incentivizes firms to aggressively pursue tax debts through the Courts Service of Ireland, including the District Court, circuit Court, court of Appeal, and the Supreme Court.
Significant Increase in Solicitor Enforcement Yield
the move comes as solicitor enforcement efforts are already demonstrating substantial gains. In 2023, the yield from solicitor enforcement reached €38.7 million, representing a 43% increase compared to the €27.05 million recovered in 2022.This positive trend underscores the potential for further gains through increased investment and a performance-based payment model.
| Year | Solicitor Enforcement Yield (€ millions) | Percentage Change |
|---|---|---|
| 2022 | 27.05 | – |
| 2023 | 38.7 | +43% |
Tender Details and timeline
The tender process is currently underway, with a closing date of October 1st. Legal firms are expected to submit proposals outlining their capabilities and strategies for maximizing tax debt recovery. the Revenue Commissioners will then evaluate these proposals and select firms based on their expertise, experiance, and proposed commission rates.
The six-year contract is designed to provide a stable framework for sustained tax recovery efforts. The estimated €30 million budget will cover legal fees, court costs, and the commission payments to the appointed firms.