Finance (Local Property Tax) Act 2012
Interest on overdue tax.
149.— (1) Subject to subsection (4), any local property tax payable by—
(a) a liable person, or
shall carry interest from—
(i) the date on which the tax is payable, or
(ii) the last day of the period within which the tax is payable,
until payment and the amount of that interest shall be determined in accordance with subsection (2).
(2) The interest referred to in subsection (1) shall be determined by using the following formula:
T x D x R
T is the local property tax payable which remains unpaid,
D is the number of days (including part of a day) in the period during which the local property tax remains unpaid, and
F151[R is the rate, represented by P in the formula T x D x P in subsection (2)(c) of section 1080 of the Act of 1997, that would apply under that formula if the local property tax payable was tax, within the meaning of that section, and the period during which the local property tax remains unpaid was the period of delay, within the meaning of that section.]
(3) The interest payable under this section—
(a) shall not be allowed as a deduction in computing any income, profits or losses for any of the purposes of the Tax Acts,
(b) may be collected and recovered in like manner as an amount of local property tax,
(c) shall be payable to the Collector-General, and
(d) shall be deemed to be a debt due to the Minister for the benefit of the Central Fund.
(4) Where a liable person—
(a) elects for a method of payment in a return, and
(b) pays the amount of local property tax in the self-assessment in the return in accordance with that method,
interest shall not be charged.
Substituted (22.07.2021) by Finance (Local Property Tax) (Amendment) Act 2021 (31/2021), s. 40, commenced on enactment.
Modifications (not altering text):
Application of section restricted by Taxes Consolidation Act 1997 (39/2997) s. 1080A(3)(u) as inserted (1.08.2020) by Financial Provisions (Covid-19) (No. 2) Act 2020 (8/2020), s. 6, commenced on enactment.
[Interest on overdue tax - supplementary provision
(2) This subsection shall apply where—
(a) an agreement is entered into between a person and the Collector-General in relation to the payment by the person of declared liabilities under section 849, and
(b) the agreement was entered into, or the person requested that the Collector-General enter into the agreement, on or before 30 September 2020.
(3) Subject to subsection (6), where subsection (2) applies, the following provisions shall not apply to the declared liabilities from the date on which the interest determined in accordance with subsection (5) applies to the declared liabilities in accordance with subsection (4):
(u) section 149 of the Finance (Local Property Tax) Act 2012;
(4) Where subsection (2) applies, the declared liabilities shall carry interest from the later of—
(a) 1 August 2020, and
(b) the date on which the agreement referred to in subsection (2) is entered into,
and the amount of that interest shall be determined in accordance with subsection (5).