Vol. 420 No. 9
72 Mr. Allen asked the Minister for Finance if he will give a rebate of £21,878 to the Southern Health Board who had to pay penal interest during 1989 on the payments of PAYE and PRSI to the Revenue Commissioners, especially in view of the fact that it is a public body and the transfer of money is artificial.
I am informed by the Revenue Commissioners that all employers are obliged to remit PAYE tax deducted together with the appropriate PRSI contributions due between the 5th and 14th day of the relevant income tax month.
Payments received after the due date give rise to statutory interest charges currently calculated at 1.25 per cent per month or part of a month.
In the present case, the interest charges paid in 1989 arose from late payment of the PAYE/PRSI due for the months ending on 5 March and 5 April 1989, and were correctly charged. In the circumstances, the Revenue Commissioners have no authority in law to remit the interest. The Public Accounts Committee has also adopted the stance that the Revenue Commissioners have no authority to waive or remit interest statutorily imposed. There can be no question therefore of the interest being refunded now.
