Section 1089 Status of interest on certain unpaid taxes and duties

subscription or 30 day access with no obligation

(1) Interest payable under―

(a) [section 14 and subsections (3) and (4) of section 117 of the Stamp Duties Consolidation Act, 1999]¹,

(b) section 21 of the Value-Added Tax Act, 1972, or

shall be payable without any deduction of income tax and shall not be allowed in computing any income, profits or losses for any of the purposes of the Income Tax Acts.

Amendments

1 Substituted by Stamp Duties Consolidation Act 1999 section 162 and Schedule 4.

What is the tax status of interest on certain unpaid taxes and duties?

(1) Interest on unpaid (or underpaid) stamp duty, value added tax, relevant contracts withholding tax (section 531(9)), or employers' PAYE (section 991) is not an "annual payment" from which you must withhold standard rate income tax....

to read the full commentary

(2) Interest payable under section 18 of the Wealth Tax Act, 1975, or [section 51 of the Capital Acquisitions Tax Consolidation Act 2003]¹, shall not be allowed in computing any income, profits or losses for any of the purposes of the Tax Acts.

Amendments

1 Substituted by Capital Acquisitions Tax Consolidation Act 2003 section 119 and Schedule 3.

Is any tax deduction available for interest on wealth tax or capital acquisitions tax?

(2) No. Interest on unpaid (or underpaid) wealth tax or capital acquisitions tax is not deductible in computing your profits or gains for income tax or corporation tax purposes.