Interest Charges

Change in relation to interest charges for Late Payment (Sections 108 and 129 TCA 1997)

Currently interest is charged on the late payment of tax at a rate of 1% per month or part of a month. With effect from 1 September 2002, this will be changed to a rate of 0.0322% per day or part of a day. The purpose of this change is to ensure that an interest charge more accurately reflects the actual delay in payment. Where a delay in a tax payment does arise, it will be to the customers benefit to pay the tax liability at the earliest possible date.

The existing practice by the Collector-General’s Office of allowing some small leeway after the due date before raising interest charges will continue. This leeway is to allow for any payment processing delays that might possibly arise and in that way to ensure that interest charges are only raised in cases where the payment is definitely late.