Taxes Consolidation Act 1997 section 111AAY

Interest on overdue amounts

Section 111AAY provides for the charging of interest on GloBE tax that remains unpaid after its due date, sets out the formula for calculating that interest, and applies the general interest provisions of section 1080 to GloBE tax.

• Interest runs automatically from the due date until the GloBE tax is paid in full.
• The interest is calculated using the formula T × D × R, where T is the unpaid tax, D is the number of days outstanding (including part days), and R is the daily interest rate under section 1080(2)(c)(i), currently 0.0219%.
• The interest rate and methodology mirror those applied to late payment of other taxes, ensuring consistent treatment of overdue GloBE tax.
• The general rules on interest contained in section 1080(3) to (5) — covering matters such as the collection and recovery of interest — also apply to interest on unpaid GloBE tax.