Taxes Consolidation Act 1997 section 1080A

Interest on overdue tax - supplementary provision

Section 1080A provides for a reduced interest rate of approximately 3% per annum on declared tax liabilities that are the subject of a phased payment agreement with the Collector-General, where that agreement was made or applied for on or before 30 September 2020.

• A reduced daily interest rate of 0.0082% (approximately 3% per annum) applies to unpaid declared liabilities covered by a payment agreement entered into, or applied for, on or before 30 September 2020.
• The reduced interest runs from the later of 1 August 2020 or the date the agreement is made, replacing the normal statutory interest rates on tax arrears for the duration of the agreement.
• If the taxpayer breaches the terms of the agreement, the normal higher interest rates on arrears reapply from the date of the breach in respect of the outstanding liabilities.
• The section does not apply where civil proceedings, sheriff enforcement, or bankruptcy proceedings have already been initiated in respect of the liabilities, or where a court order determines how the liabilities are to be paid.