Interest rate applied by Rev Comm to unpaid tax

54and56

Hi all,

Is there a universal interest rate Rev Comm apply to unpaid taxes? I've looked on their website and can't find anything stating that the interest rate on overdue taxes is X% and calculated on a compound annual/monthly basis.

Appreciate any links or example of how such calculations are made by Revenue.

Cheers.

hjr

This is what your looking for I think:

http://www.revenue.ie/en/about/foi/s16/collection/debt-management/guidelines-for-charging-interest-on-late-payment.pdf

From Page 4:

The Finance Act 2009 reduced interest rates from the 1st July 2009 as follows:
IT, CT and CGT - 0.0219%
PAYE/PRSI, VAT and RCT - 0.0274%

Works out about 8% per annum on IT, CT, CGT and 10% on the others...

Hope this helps..

Je_suis_Jean wrote: »

Hi all,

Is there a universal interest rate Rev Comm apply to unpaid taxes? I've looked on their website and can't find anything stating that the interest rate on overdue taxes is X% and calculated on a compound annual/monthly basis.

Appreciate any links or example of how such calculations are made by Revenue.

Cheers.

54and56

That's brilliant HJR, much appreciated.

I see from the calculation examples in Appendix 6 that interest is not calculated on a compound basis. I assumed it would have been but it's good to know it's not.