Taxes Consolidation Act 1997 section 1080

Interest on overdue income tax and corporation tax

Section 1080 sets out the mechanism for calculating interest on overdue income tax, corporation tax and capital gains tax.

• Interest on unpaid tax is calculated using the formula T × D × P, where T is the tax unpaid, D is the number of days of delay, and P is a daily percentage rate that varies by historical period (currently 0.0219% per day from 1 July 2009 onwards).
• Where the period of delay spans more than one rate period in the statutory table, the interest for each portion is calculated separately at the applicable rate and the amounts are aggregated.
• Interest is payable gross (no deduction of income tax at source) and is not deductible in computing income, profits or losses for tax purposes; it is a debt due to the Minister for Finance for the benefit of the Central Fund.
• All tax recovery procedures apply equally to the collection of unpaid interest, and in recovery proceedings a Revenue officer's certificate stating the amount due is accepted as evidence until the contrary is proved.