Finance (Covid-19 and Miscellaneous Provisions) Act 2021

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Covid-19: special warehousing and interest (relevant tax due under section 28B(11))

7. The Act of 2020 is amended by the insertion of the following section after section 28C:

“Covid-19: special warehousing and interest (relevant tax due under section 28B(11))

28D. (1) In this section—

‘the Acts’ has the same meaning as it has in section 28C;

‘Covid-19 relevant tax’ means relevant tax, as referred to in subsection (12) of section 28B, due and payable during Period 1 in accordance with that subsection;

‘Period 1’, in relation to an employer, means the period beginning on 1 July 2020 and ending on 31 December 2021;

‘Period 2’, in relation to an employer, means the period beginning on 1 January 2022 and ending on 31 December 2022;

‘Period 3’, in relation to an employer, means the period beginning on 1 January 2023 and ending on the day on which the employer has discharged the employer’s liability in respect of the Covid-19 relevant tax in full.

(2) This section shall apply to an employer—

(a) who, as a consequence of the effect on the employer’s business of Covid-19 is unable to pay all or part of the employer’s liability in respect of Covid-19 relevant tax,

(b) who complies with the requirements under Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 and this Part, and

(c) either—

(i) the employer’s tax affairs are administered by the Personal Division or Business Division of the Office of the Revenue Commissioners, or

(ii) the employer has formed the view that the employer is unable to pay all or part of the employer’s liability in respect of Covid-19 relevant tax and has notified the Revenue Commissioners that the employer has formed such a view.

(3) For the purposes of subsection (2)(c)(i), an employer’s tax affairs shall be treated as being administered by the Personal Division or Business Division of the Office of the Revenue Commissioners where the most recent correspondence received by the employer from that Office indicates that to be the case.

(4) An officer authorised under section 990 of the Taxes Consolidation Act 1997 may make such enquiries as he or she considers necessary to satisfy himself or herself as to whether an employer is unable to pay the employer’s liability in respect of Covid-19 relevant tax.

(5) Where this section applies to an employer, section 28B(15) shall not apply to the employer’s liability in respect of Covid-19 relevant tax.

(6) Where—

(a) this section applies to an employer, and

(b) the employer complies with the employer’s obligations under the Acts,

no interest shall be due and payable by the employer in relation to the employer’s liability in respect of Covid-19 relevant tax during Period 1 and Period 2.

(7) Where—

(a) this section applies to an employer,

(b) the employer complies with the employer’s obligations under the Acts,

(c) the employer has, prior to Period 3, entered into an agreement with the Collector-General to pay the employer’s liability in respect of Covid-19 relevant tax, together with interest under this subsection, and

(d) the employer complies with the obligations of the employer under the agreement referred to in paragraph (c),

from the first day of Period 3 simple interest shall be paid by the employer to the Revenue Commissioners in relation to any amount of the Covid-19 relevant tax remaining unpaid and such interest shall be calculated from that day until payment of the amount for any day or part of a day during which that amount remains unpaid, at a rate of 0. 0082 per cent.

(8) Where an employer—

(a) during Period 1 or Period 2, fails to comply with an obligation referred to in subsection (6)(b),

(b) on the first day of Period 3, has not entered into an agreement referred to in subsection (7)(c), or

(c) during Period 3, fails to comply with an obligation referred to in subsection (7)(b) or (d),

simple interest shall be paid by the employer to the Revenue Commissioners in relation to any amount of the Covid-19 relevant tax remaining unpaid from—

(i) in a case in which paragraph (a) or (c) applies, the date on which the event resulting in failure to comply with the obligation concerned occurred, and

(ii) in a case in which paragraph (b) applies, the first day of Period 3,

and such interest shall be calculated from that day until payment of the amount for any day or part of a day during which that amount remains unpaid, at a rate of 0. 0219 per cent.

(9) Where an employer has complied with the requirements under Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 and this Part, the failure of the employer to pay Covid-19 relevant tax shall not, for the purpose of section 1094 or 1095 of the Taxes Consolidation Act 1997 , be treated as a failure to comply with the obligations imposed on the employer by the Acts (within the meaning of section 1094 or 1095, as the case may be).

(10) Section 960E(2) of the Taxes Consolidation Act 1997 shall not apply in respect of Covid-19 relevant tax where the employer concerned complies with the employer’s requirements under Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 and this Part.”.