Finance Act, 2002

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Interest on unpaid and overpaid tax

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

(a) in sections 172K(6)(b)(inserted by the Finance Act, 1999 ), 240(3) (as amended by the Finance Act, 1998 ), 730G(7)(b)(inserted by the Finance Act, 2000 ), 739F(7)(b) (inserted by the Finance Act, 2000 ), 784E(6)(b) (inserted by the Finance Act, 1999 ) and 848M(6)(b) (inserted by the Finance Act, 2001 ), by substituting “0.0322 per cent for each day or part of a day” for “1 per cent for each month or part of a month”,

(b) in section 531(9), by substituting “0.0322 per cent for each day or part of a day on” for “1 per cent for each month or part of a month during”,

(c) in section 942(6)(b), by substituting “0.0161 per cent, or such other rate (if any) prescribed by the Minister for Finance by regulations, for each day or part of a day” for “0.6 per cent, or such other rate (if any) prescribed by the Minister for Finance by regulations, for each month or part of a month”,

(d) in section 953(7), by substituting “0.0161 per cent, or such other rate (if any) prescribed by the Minister for Finance by regulations, for each day or part of a day” for “0.5 per cent, or such other rate (if any) prescribed by the Minister for Finance by regulations, for each month or part of a month”,

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

“(1) Where any 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 and at the rate of 0.0322 per cent for each day or part of a day on which the amount remains unpaid.”,

and

(f) in section 1080—

(i) in paragraphs (a) and (b) of subsection (1), by substituting “0.0322 per cent for each day or part of a day” for “1 per cent for each month or part of a month”, and

(ii) by deleting subsection (2).

(2) The Wealth Tax Act, 1975 , is amended—

(a) in section 18(2), by substituting “0.0322 per cent per day or part of a day” for “1 per cent per month or part of a month”, and

(b) in section 22(2)—

(i) by substituting “0.0161 per cent of the amount to be repaid or retained for each day or part of a day” for “0.5 per cent of the amount to be repaid or retained for each month or part of a month”, and

(ii) by deleting the proviso.

(3) The Capital Acquisitions Tax Act, 1976 , is amended—

(a) in section 41(2), by substituting “0.0322 per cent per day or part of a day” for “1 per cent per month or part of a month”, and

(b) in section 46(1), by substituting “0.0161 per cent, or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each day or part of a day” for “0.5 per cent, or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month”.

(4) The Finance Act, 1983 , is amended—

(a) in section 105(1)—

(i) by substituting “0.0322 per cent per day or part of a day” for “1 per cent per month or part of a month”, and

(ii) by deleting the proviso,

and

(b) in section 107(2), by substituting “0.0161 per cent, or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, of the amount to be repaid or retained for each day or part of a day” for “0.5 per cent, or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, of the amount to be repaid or retained for each month or part of a month”.

(5) Section 117 of the Finance Act, 1993 , is amended in paragraph (b) by substituting “0.0322 per cent per day or part of a day” for “one per cent per month or part of a month”.

(6) The Stamp Duties Consolidation Act, 1999 , is amended—

(a) in sections 5(4) and 117(3), by substituting “0.0322 per cent for each day or part of a day” for “1 per cent for each month or part of a month”,

(b) in sections 14(1), 75(3), 79(7) and 80(8), paragraphs (a) and (b) of section 81(7) and sections 87(3), 87A(4)(a), 91(2)(c)(i), 92(2)(a), 92A(3)(a), 92B(4)(a), 117(4), 123(7), 124(5)(b) and 125(6), by substituting “0.0322 per cent for each day or part of a day” for “1 per cent per month or part of a month”,

(c) in subsections (4)(b) and (7) of section 29 and in subsections (4)(b) and (7) of section 53, by substituting “0.0161 per cent, or such other rate (if any) as stands prescribed by the Minister by regulations, for each day or part of a day” for “0.5 per cent, or such other rate (if any) as stands prescribed by the Minister by regulations, for each month or part of a month”, and

(d) in section 117(2)(b)(ii), by substituting “0.0161 per cent per day or part of a day” for “6 per cent per annum”.

(7) This section applies from 1 September 2002 to interest chargeable or payable under the provisions mentioned in subsections (1) to (6) in respect of an amount due to be paid or remitted or an amount to be repaid or retained, as the case may be, whether before, on or after that date in accordance with those provisions.