Taxes Consolidation Act, 1997 (Number 39 of 1997)
Chapter 5
Interest on overdue tax
[8]>
1080 Interest on overdue income tax and corporation tax.
[ITA67 s550(1), (3), (4) and (5); FA71 s17(2); FA74 s86 and Sch2 PtI; CTA76 s145(3); FA78 s46; FA85 s12; FA97 s146(1) and Sch9 PtI par10(7)]
(1) (a) Subject to this section and section 1081, any tax charged by any assessment to income tax or corporation tax shall carry interest at the rate of [1]>[2]>1.25 per cent<[1]<[2][5]>[6]>[1]>[2]>1 per cent<[1]<[2] for each month or part of a month<[5]<[6][5]>[6]>0.0322 per cent for each day or part of a day<[5]<[6] from the date when the tax becomes due and payable until payment.
(b) Any tax charged by any assessment to income tax shall, notwithstanding any appeal against such assessment, carry interest at the rate of [1]>[2]>1.25 per cent<[1]<[2][5]>[6]>[1]>[2]>1 per cent<[1]<[2] for each month or part of a month<[5]<[6][5]>[6]>0.0322 per cent for each day or part of a day<[5]<[6] from the date when, if there were no appeal against the assessment, the tax would become due and payable under section 960 until payment.
[7]>
(2) Interest shall not be payable under this section on the tax charged by any assessment unless the total amount of the interest is not less than [4]>£1<[4][4]>€2<[4].
<[7]
(3) The interest payable under this section—
(a) shall be payable without any deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any of the purposes of the Tax Acts, and
(b) shall be deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Revenue Commissioners,
and, subject to subsection (4)—
(i) every enactment relating to the recovery of any tax charged by an assessment,
(ii) every rule of court so relating,
(iii) section 81 of the Bankruptcy Act, 1988, and
(iv) sections 98 and 285 of the Companies Act, 1963,
shall apply to the recovery of any amount of interest payable on that tax as if that amount of interest were a part of that tax.
[3]>
(4) In proceedings instituted by virtue of subsection (3)—
(a) a certificate by the Collector-General certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proved that that amount is so due and payable, and
(b) a certificate so certifying and purporting to be signed by the Collector-General may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by the Collector-General.
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(4) In proceedings instituted by virtue of subsection (3)—
(a) a certificate signed by an officer of the Revenue Commissioners certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proved that that amount is so due and payable, and
(b) a certificate so certifying and purporting to be signed as specified in this section may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.
<[3]
<[8]
[8]>
1080 Interest on overdue income tax, corporation tax and capital gains tax.
(1) In this section—
“chargeable period” has the same meaning as in section 321(2);
“chargeable person” has the same meaning [11]>as in section 950(1)<[11][11]>as it has for the purposes of Part 41A<[11];
“period of delay”, in relation to any tax due and payable, means the period during which that tax remains unpaid;
“Table” means the Table to subsection (2);
“tax” means income tax, corporation tax or capital gains tax, as appropriate;
“relevant period”, in relation to a period of delay which falls into more than one of the periods specified in column (1) of the Table, means any part of the period of delay which falls into, or is the same as, a period specified in that column.
(2) (a) Subject to this section and section 1081—
(i) as respects tax due and payable for a chargeable period beginning before 1 January 2005, any tax charged by any assessment to tax shall carry interest from the date when the tax becomes due and payable until payment, and
(ii) as respects tax due and payable for a chargeable period beginning on or after 1 January 2005, any tax due and payable by a chargeable person for a chargeable period shall carry interest from the date when the tax becomes due and payable until payment,
and the amount of that interest shall be determined in accordance with paragraph (c).
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(b) Subject to this section and section 1081, any tax charged by any assessment to income tax shall, notwithstanding any appeal against such assessment, carry interest from the date when, if there were no appeal against the assessment, the tax would become due and payable under section 960 until payment, and the amount of that interest shall be determined in accordance with paragraph (c).
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[10]>
(b) Subject to this section and section 1081—
(i) any tax charged by any assessment to income tax, and
(ii) any tax contained in a statement sent in accordance with [13]>Regulation 37 of the Income Tax (Employments) (Consolidation) Regulations 2001 (S.I. No. 559 of 2001)<[13][13]>Regulation 28 of the Income Tax (Employments) Regulations 2018 (S.I. No. 345 of 2018)<[13],
shall, notwithstanding any appeal against such assessment or statement, carry interest from the date when, if there were no appeal against the assessment or statement, the tax would become due and payable under section 960 until payment, and the amount of that interest shall be determined in accordance with paragraph (c).
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(c) The interest to be carried by the tax referred to in paragraph (a) or (b), as the case may be, shall be—
(i) where one of the periods specified in column (1) of the Table includes or is the same as the period of delay, the amount determined by the formula—
T × D × P
where—
T is the tax due and payable which remains unpaid,
D is the number of days (including part of a day) forming the period of delay, and
P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table within which the period of delay falls or which is the same as the period of delay,
and
(ii) where a continuous period formed by 2 or more of the periods specified in column (1) of the Table, but not (as in subparagraph (i)) only one such period, includes or is the same as the period of delay, the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula—
T × D × P
where—
T is the tax due and payable which remains unpaid,
D is the number of days (including part of a day) forming the relevant period, and
P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table into which the relevant period falls or which is the same as the relevant period.
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TABLE | |
|---|---|
(Period) |
(Percentage) |
(1) |
(2) |
From 6 April 1963 to 31 July 1971 |
0.0164% |
From 1 August 1971 to 30 April 1975 |
0.0246% |
From 1 May 1975 to 31 July 1978 |
0.0492% |
From 1 August 1978 to 31 March 1998 |
0.041% |
From 1 April 1998 to 31 March 2005 |
0.0322% |
From 1 April 2005 to the date of payment |
0.0273% |
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Table | |
|---|---|
(Period) |
(Percentage) |
(1) |
(2) |
From 6 April 1963 to 31 July 1971 |
0.0164% |
From 1 August 1971 to 30 April 1975 |
0.0246% |
From 1 May 1975 to 31 July 1978 |
0.0492% |
From 1 August 1978 to 31 March 1998 |
0.0410% |
From 1 April 1998 to 31 March 2005 |
0.0322% |
From 1 April 2005 to 30 June 2009 |
0.0273% |
From 1 July 2009 to the date of payment |
0.0219% |
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(3) The interest payable under this section—
(a) shall be payable without deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any of the purposes of the Tax Acts, and
(b) shall be deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Revenue Commissioners.
(4) Subject to subsection (5)—
(a) every enactment relating to the recovery of tax,
(b) every rule of court so relating,
(c) section 81 of the Bankruptcy Act 1988, and
(d) [12]>sections 98 and 285 of the Companies Act 1963<[12][12]>sections 440 and 621 of the Companies Act 2014<[12],
shall apply to the recovery of any amount of interest payable on that tax as if that amount of interest were a part of that tax.
(5) In proceedings instituted by virtue of subsection (4)—
(a) a certificate signed by an officer of the Revenue Commissioners certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proven that that amount is so due and payable, and
(b) a certificate so certifying and purporting to be signed as specified in this subsection may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.
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[1]
Substituted by FA98 s133(1)(a). Applies for any month, or any part of a month, commencing on or after the date of the passing of this Act. FA98 27-03-98
[2]
Substituted by FA98 s133(1)(a). Applies for any month, or any part of a month, commencing on or after the date of the passing of this Act. FA98 27-03-98
[3]
Substituted by FA01 s236(b). Applies as on and from the passing of this Act. FA01 30-03-01
[5]
Substituted by FA02 s129(1)(f)(i). This section applies from 1 September 2002 to interest chargeable or payable in respect of an amount due to be paid or remitted or an amount to be repaid or retained, as the case may be, whether before, on or after that date in accordance with those provisions.
[6]
Substituted by FA02 s129(1)(f)(i). This section applies from 1 September 2002 to interest chargeable or payable in respect of an amount due to be paid or remitted or an amount to be repaid or retained, as the case may be, whether before, on or after that date in accordance with those provisions.
[7]
Deleted by FA02 s129(1)(f)(ii). This section applies from 1 September 2002 to interest chargeable or payable in respect of an amount due to be paid or remitted or an amount to be repaid or retained, as the case may be, whether before, on or after that date in accordance with those provisions.
[8]
Substituted by FA05 s145(1). Shall apply to any unpaid income tax, corporation tax or capital gains tax, as the case may be, that has not been paid before 1 April 2005.
[9]
Substituted by FA09 s29(1)(h). Applies as respects any unpaid tax or duty, as the case may be, that has not been paid before 1 July 2009 regardless of whether that tax or duty became due and payable before, on or after that date.
[10]
Substituted by FA11 s21(g). Deemed to have come into force and takes effect as on and from 1 January 2011.