Taxes Consolidation Act 1997 section 960GA

Repayment or refund of payment made in excess of liability to tax assessed by taxpaye

Section 960GA removes the entitlement to interest on repayments of tax where the tax was paid voluntarily against an assessment that is under appeal and the appeal or court proceedings ultimately result in a refund.

• Where a taxpayer appeals an assessment (or seeks judicial review of an Appeal Commissioners' decision) and voluntarily pays the disputed tax to Revenue, any subsequent repayment arising from the appeal will not carry interest.
• The payment must be made directly, by deduction or by offset, and the taxpayer must identify it as being allocated against the liability under the disputed assessment.
• The repayment may arise from a settlement agreement with Revenue, a determination by the Appeal Commissioners in the taxpayer's favour (including where affirmed on further appeal), or a final court determination.
• The restriction on interest applies only to the extent that the payment made exceeded the amount of the self-assessed liability — interest remains payable on any other element of overpayment.