Dáil Éireann Debate, Tuesday - 22 May 2012
247 Deputy Jim Daly asked the Minister for Finance if he will confirm the rate of interest charged by the Revenue Commissioners to business owners that are in arrears of payment of tax; his views on whether it is a fair rate; and if he will make a statement on the matter. [25559/12]
Amharc ar fhreagraThe Finance Act 2009 provided for a reduction from 1 July 2009 of the rate of interest applied to late payment of tax. In the case of Income Tax, Corporation Tax, Capital Gains Tax, Capital Acquisition Tax, and Stamp Duty, the daily rate of interest was reduced from 0.0273% to 0.0219%, in effect an annual equivalent drop from 10 % to 8%. In the case of fiduciary taxes, e.g. VAT, PAYE/PRSI and Relevant Contracts Tax the daily rate was reduced from 0.0322 to 0.0274%, in effect an annual equivalent drop from 12% to 10%. The Revenue Commissioners are charged with responsibility for the timely collection and recovery of taxes and duties due to the Exchequer. Where businesses or individuals fail to meet their tax payment obligations on time, then they are liable to interest, as provided for in the Taxes Consolidation Act. Interest on late payment of tax operates not only as a compensation for the Exchequer for the late payment of monies due to it but also as an essential support for timely voluntary compliance by ensuring a level playing field between those who meet their obligations on time and those who pay late or who may attempt not to pay at all.
I am satisfied that the current regime as regards interest on late payment of taxes and duties, both the legislative basis and the administrative processes operated by Revenue, achieves the correct balance in supporting timely compliance and securing the revenues due to the Exchequer on a timely basis.
