12. (1) Any rates levied by a rating authority in respect of a relevant property payable by a liable person under this Act shall carry interest from the first day of January in the year following the local financial year to which the rates relate 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 in accordance with the following formula:

T x D x R

where

T is the total amount of rates due and payable which remains unpaid,

D is the number of days (including part of a day) in the period during which the rates remain unpaid, and

R is F6[the prescribed rate or, if no rate is prescribed, the rate of 0.0219 per cent].

(3) The interest payable under this section shall be payable to the relevant rating authority and may be collected and recovered in like manner as an amount of rates.