Liam Aylward
Question:108 Mr. Aylward asked the Minister for Finance if he will refund the interest charged on outstanding taxes to a person (details supplied) in County Tipperary. [30214/01]
Written Answers. - Tax Collection.
I am informed by the Revenue Commissioners that the case referred to by the Deputy relates largely to income tax dating back to 1992. The taxpayer in question received numerous requests and demands for payment. When, in 2001, some liability for 1992 still remained unpaid, Revenue referred the tax due and appropriate interest to the sheriff for collection.
Interest is a statutory charge and is designed to compensate the Exchequer for the loss of revenue and to ensure equity for those taxpayers who pay the correct amount on time. It is the age of the debt which determines the amount of interest chargeable and, as indicated above, the debt in this case dates back to 1992. I am advised by the Revenue Commissioners that having regard to the age of the debt and the taxpayer's circumstances, they are not prepared to refund the interest collected.