865A Interest on Repayments

Summary

The section provides for a general scheme of interest on repayments of income tax, corporation tax or capital gains tax. In accordance with Finance Act 2003 (Commencement of section 17) Order 2003 (S.I. No. 508 of 2003), the section applies to repayments of those taxes made on or after 1 November 2003.

Details

Repayments due to mistaken assumption by Revenue

(1) Where the repayment due arises from a mistaken assumption by Revenue in the application of the law, then interest will be paid from the end of the chargeable period or, if later, when the tax was paid, until the repayment is made. Interest will not apply, however, for any period where the repayment is withheld in accordance with section 960H because returns are outstanding.

Other repayments

(2) In the case of all other repayments, including repayments of preliminary tax, interest will be paid from 93 days after a claim becomes a valid claim until the repayment is made. Interest will not apply, however, for any period where the repayment is withheld in accordance with section 960H because returns are outstanding.

Rate of interest

(3) Interest will be paid under the section at the rate of 0.011% per day (or part of a day) or such other rate as the Minister for Finance may prescribe by order. Such orders must be laid before the Dáil and may be annulled by a Resolution of the Dáil within 21 sitting days.

(4) Interest will not be paid under the section if it is less than €10. Interest will be paid without deduction of tax and will not be taxable.

(5) Interest will not be payable under the section in relation to a repayment to the extent that the repayment attracts interest under another provision of the Tax Acts or the Capital Gains Tax Acts.

Relevant Date: Finance Act 2019