Written Answers. - Interest Charges.

John Perry


265 Mr. Perry asked the Minister for Finance if he will waive interest charges imposed on a person (details supplied) in County Sligo; if the interest charged will be credited on this person's 2001/2002 tax liability; and if he will make a statement on the matter. [27798/01]

I am advised by the Revenue Commissioners that an income tax liability for the individual in question for the year 1999-2000 of £9,988.48 together with interest of £1,897.72 was referred to the sheriff for collection on 15 June 2001, following the person's failure to make payment despite being reminded by Revenue of his obligation to do so. The interest accrued in the normal way from 1 November 1999, because the person concerned failed to pay the correct amount of preliminary tax for the year in question. I am advised by the Revenue Commissioners that the sheriff has, taking account of the person's financial circumstances, accepted a phased payment of the debt.

Interest payable on late payment of tax is not allowed as a deduction in computing the amount of income, profits or other gains that are chargeable to any tax. I am advised by the Revenue Commissioners that it is not possible, therefore, for the interest charged to be credited to or against the tax liability for 2000-2001 or subsequent years.