Value-Added Tax Consolidation Act 2010

114A

F288[ Interest payable in certain circumstances.

114A.(1) Where an amount of tax is refunded to a person in accordance with an order under section 103 and

(a) no amount of tax was properly refundable to that person under the order, or

(b) the amount of tax refunded is greater than the amount properly refundable to that person under that order,

then simple interest shall be paid by that person on any amount of tax refunded to that person which was not properly refundable to that person under that order, from the date the refund was made, at the rate of 0.0274 per cent for each day or part of a day during which the person does not correctly account for any such amount refunded which was not properly refundable.

(2) Subsection (1) shall apply to tax recoverable by virtue of a notice under section 111 (whether a notice of appeal under that section is received or not) as if the tax were tax which the person was liable to pay for the taxable period or, as the case may be, the later or latest taxable period included in the period comprised in the notice.]

Annotations

Amendments:

F288

Inserted (31.03.2012) by Finance Act 2012 (9/2012), s. 92, commenced on enactment.

Modifications (not altering text):

C6

Application of section restricted by Taxes Consolidation Act 1997 (39/1997), s. 1080A, 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

1080A. ...

(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): ...

(s) section 114 of the Value-Added Tax Consolidation Act 2010 ;

(t) section 114A of the Value-Added Tax Consolidation Act 2010 ;

...

(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).

(5) The interest to be carried by the declared liabilities referred to in subsection (4) shall be the amount determined by the formula—

DL x D x P

where—

DL is the amount of the declared liabilities which remains unpaid,

D is the number of days (including part of a day) forming the period of delay, and

P is 0.0082 per cent.

...