Finance Act 2009

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Interest on certain overdue tax.

29.— (1) The Principal Act is amended—

(a) in section 172K(6) by substituting the following for paragraph (b):

“(b) Any amount of dividend withholding tax payable in accordance with this Chapter without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment—

(i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

(b) in section 240(3) by substituting the following for paragraph (a):

“(a) Any tax payable in accordance with section 239 without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment—

(i) for any day or part of a day before 1 August 1978 during which the amount remains unpaid, at a rate of 0.0492 per cent,

(ii) for any day or part of a day on or after 1 August 1978 and before 1 April 1998 during which the amount remains unpaid, at a rate of 0.0410 per cent,

(iii) for any day or part of a day on or after 1 April 1998 and before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(iv) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

(c) in section 258(9) by substituting the following for paragraph (b):

“(b) Any amount of appropriate tax or amount on account of appropriate tax payable in accordance with this Chapter without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment—

(i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

(d) in section 531 by substituting the following for subsection (9):

“(9) Where the amount of tax which a person who is or is deemed to be a principal of the kind referred to in subsection (1) is liable under this section and any regulations under subsection (6) to pay to the Collector-General is not so paid, simple interest on the amount shall be paid by the person to the Collector-General and shall be calculated from the date on which the amount became due and payable until payment—

(a) for any day or part of a day before 1 August 1978 during which the amount remains unpaid, at a rate of 0.0492 per cent,

(b) for any day or part of a day on or after 1 August 1978 and before 1 April 1998 during which the amount remains unpaid, at a rate of 0.0410 per cent,

(c) for any day or part of a day on or after 1 April 1998 and before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(d) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

(e) in section 730G(7) by substituting the following for paragraph (b):

“(b) Any amount of appropriate tax shall carry interest from the date when the amount becomes due and payable until payment—

(i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

(f) in section 739F(7) by substituting the following for paragraph (b):

“(b) Any amount of appropriate tax shall carry interest from the date when the amount becomes due and payable until payment—

(i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

(g) in section 991 by substituting the following for subsection (1):

“(1) Where an amount of tax which an employer is liable under this Chapter and any regulations under this Chapter to pay to the Revenue Commissioners is not so paid, simple interest on the amount shall be paid by the employer to the Revenue Commissioners, and such interest shall be calculated from the expiration of the period specified in the regulations for the payment of the amount until payment—

(a) for any day or part of a day before 1 August 1978 during which the amount remains unpaid, at a rate of 0.0492 per cent,

(b) for any day or part of a day on or after 1 August 1978 and before 1 April 1998 during which the amount remains unpaid, at a rate of 0.0410 per cent,

(c) for any day or part of a day on or after 1 April 1998 and before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(d) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”,

and

(h) in section 1080 by substituting the following for the Table to subsection (2):

“Table

”.

(2) Section 159D of the Stamp Duties Consolidation Act 1999 is amended—

(a) in subsection (1) by inserting the following after the definition of “ period of delay ”:

“ ‘ 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 to subsection (2), means any part of the period of delay which falls into, or is the same as, a period specified in that column;”,

and

(b) by substituting the following for subsection (2):

“(2) The amount of interest charged, chargeable, payable or recoverable in respect of any unpaid duty or other amount due and payable or recoverable under a specified provision—

(a) where one of the periods specified in column (1) of the Table to this subsection includes or is the same as the period of delay, shall be the amount determined by the formula—

A × D × P

where—

A is the duty or other amount due and payable under the specified provision 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 to this subsection opposite the period specified in column (1) of the said Table within which the period of delay falls or which is the same as the period of delay,

and

(b) where a continuous period formed by more than one period specified in column (1) of the Table to this subsection, but not (as in subsection (a)) only one such period, includes or is the same as the period of delay, shall be 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—

A × D × P

where—

A is the duty or other amount due and payable under the specified provision 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 to this subsection opposite the period specified in column (1) of the said Table within which the period of delay falls or which is the same as the relevant period.

Table

”.

(3) Section 51 of the Capital Acquisitions Tax Consolidation Act 2003 is amended in subsection (2) by substituting the following for the Table to that subsection:

“Table

Part 1

Part 2

”.

(4) Section 21 (1) of the Value-Added Tax Act 1972 is amended—

(a) in paragraph (a) by substituting “0.0274” for “0.0322”, and

(b) in paragraph (b) by substituting “0.0274” for “0.0322”.

(5) Section 103 (2) of the Finance Act 2001 is amended by substituting the following for paragraph (a):

“(a) Without prejudice to the provisions of section 74 of the Finance Act 2002 concerning betting duty, where any amount of excise duty becomes payable under subsection (1) or under any other provision of the statutes which relate to the duties of excise, or any instrument relating to the duties of excise made under statute, and is not paid, simple interest on the amount shall be paid by the person liable to pay the duty and such interest shall be calculated from the date on which the amount became payable—

(i) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(ii) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”.

(6) Section 74 of the Finance Act 2002 is amended by substituting the following for subsection (1):

“(1) Where any amount of betting duty becomes payable under section 67 and is not paid, simple interest on the amount shall be paid by the person liable to pay the duty and such interest shall be calculated from the date on which the amount becomes payable—

(a) for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and

(b) for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.”.

(7) (a) Subsections (1), (2), (3), (5) and (6) shall apply 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.

(b) Subsection (4) shall apply as respects interest payable under section 21 of the Value-Added Tax Act 1972 for any day or part of a day commencing on or after 1 July 2009, in respect of an amount of value-added tax due to be paid or an amount of value-added tax refunded which was not properly refundable, as the case may be, whether before, on or after that date.