Vol. 505 No. 5
73 Mr. Yates asked the Minister for Finance if the pursuance and collection of a financial charge for interest payments to a person (details supplied) in County Wexford will be deferred, mitigated or dropped in view of the fact that all the principal tax has been discharged. [14131/99]
I am informed by the Revenue Commissioners that the interest charge arises because the taxpayer failed to comply with the preliminary tax rules in relation to the 1996-97 income tax year. As the Deputy is aware, the self assessment system for income tax has brought major advantages both to Revenue and to the taxpayer and it is essential that the integrity of the system be protected. One of the crucial elements of self assessment is the payment by the taxpayer of the correct preliminary tax liability by the relevant due date. Concerns had arisen that an increasing number of taxpayers were failing to comply with this requirement and the Commissioners had to address the problem by raising interest charges in appropriate cases.
In the case referred to, an interest charge was considered appropriate because no preliminary tax was paid by the taxpayer in respect of the 1996-97 income tax year. It was also noted that the taxpayer has consistently failed to meet the preliminary tax rules for many years. The effect of this is that much of his tax liability is paid considerably later than it should be paid, nineteen months late in the case of the 1996-97 tax year. The Revenue Commissioners have again carefully reviewed this case. However, they cannot accept that the interest charge should be waived because the tax itself has been paid.
Prior to the Deputy's parliamentary question, the taxpayer and his agent were in touch with the Revenue Commissioners, and, in an effort to assist, it was agreed to accept payment of the interest charge over a number of months. If it would be helpful, the Commissioners would be prepared to consider the possibility of allowing a somewhat longer time for payment and the taxpayer may wish to contact the Office of the Collector-General, Sarsfield House, Francis Street, Limerick, telephone 1890 20 30 70, to discuss this possibility further.
