This is a matter for the Revenue Commissioners. I am advised by Revenue that a significant tax debt was paid over six months late in this instance and Revenue sought to collect an interest debt arising from this late payment. This matter was the subject of an appeal to Revenue and also the subject of a joint review by Revenue and an external reviewer at the request of the business concerned. The finding of the review was that the interest charge was properly due and payable.
Interest on late payment of tax underpins the self-assessment system by encouraging timely compliance. It also ensures that those who meet their tax obligations on time are not disadvantaged vis-à-vis those who pay late.
I am advised by Revenue that as the interest is properly due, arrangements should now be put in place for early payment.