114A Interest payable in certain circumstances.

(1) Where an amount of tax is refunded to a person in accordance with an order under section 103 and—

(a) no amount of tax was properly refundable to that person under the order, or

(b) the amount of tax refunded is greater than the amount properly refundable to that person under that order,

then simple interest shall be paid by that person on any amount of tax refunded to that person which was not properly refundable to that person under that order, from the date the refund was made, at the rate of 0.0274 per cent for each day or part of a day during which the person does not correctly account for any such amount refunded which was not properly refundable.

(2) Subsection (1) shall apply to tax recoverable by virtue of a notice under section 111 (whether a notice of appeal under that section is received or not) as if the tax were tax which the person was liable to pay for the taxable period or, as the case may be, the later or latest taxable period included in the period comprised in the notice.