Section 159B Interest on repayments of stamp duty

Summary

This section provides that interest on a repayment will only be paid where the repayment has not been made by the Revenue Commissioners within the period of 93 days (for repayments made before 2 April 2007 it was 183 days) of receiving a valid claim for repayment and then only from the expiration of that period to the date of repayment. An exception to this general rule is that interest will be paid from the date of payment giving rise to the repayment where the Revenue Commissioners have made an error in the operation of stamp duty. The section also provides that the rate of interest on such repayments is at the rate of 0.011 per cent per day or part of a day.

This section came into operation by virtue of S.I. No. 514 of 2003 entitled “Finance Act 2003 (Commencement of Section 142) Order 2003” in respect of repayments made on or after 1 November 2003 other than repayments made in respect of claims for repayment made before 1 November 2003 by virtue of section 29(4)(b) and (7), section 53(4)(b) and (7) or section 117(2)(b) which will be repaid at the rate of interest applicable under those particular sections.

Details

(1) “relevant date” means—

(i) the date which is 93 days after the date on which a valid claim in respect of the repayment is made to the Revenue Commissioners, or

(ii) where the repayment is due to a mistaken assumption in the operation of stamp duty on the part of the Revenue Commissioners, the date which is the date of the payment of stamp duty, interest, a surcharge or penalty, as the case may be, which has given rise to that repayment.

“relevant document” means an instrument stamped by the Revenue Commissioners, a statement of liability delivered to the Revenue Commissioners under any provision of the Stamp Duties Consolidation Act 1999, or an operator-instruction entered in a relevant system under section 69.

“repayment” means a repayment of stamp duty including a repayment of any interest charged, surcharge imposed or penalty incurred, under any provision of the Stamp Duties Consolidation Act 1999.

(2) No interest is payable in respect of a repayment claim made under any other provision of the Stamp Duties Consolidation Act 1999 unless the interest qualifies to be paid under this section.

(3), (8) A repayment of stamp duty made in respect of a valid claim will carry interest payable at the rate of 0.011 per cent per day or part of a day for the period commencing on the relevant date (as defined in subsection (1)) and ending on the date that the repayment is made. This rate may be amended by Ministerial Order which must be laid before Dáil Éireann.

(4) A claim for repayment shall be treated as a valid claim where the provisions of the Stamp Duties Consolidation Act 1999, governing the repayment claim, has been satisfied and any information required by the Revenue Commissioners in support of the claim has been furnished to them.

(5) Interest is not payable under this section where the amount is €10 or less.

(6) An entitlement to a repayment of stamp duty or interest can only arise under the provisions of the Stamp Duties Consolidation Act 1999 or section 941 of the Taxes Consolidation Act 1997 as it applies for the purposes of stamp duty.

(7) Income tax is not deductible from any payment of interest and interest is not reckoned in computing income for the purposes of the Tax Acts.

(9) The Revenue Commissioners have power to make regulations in relation to the operation of the section.

Relevant Date: Finance Act 2014