Deadline extended: Reduced interest rate on outstanding ‘non-COVID-19’ tax debts

Oct 01, 2020

Revenue extended the deadline from 30 September to 31 October for taxpayers wishing to enter into a phased payment arrangement (PPA) to avail of the reduced interest rate (3 percent) on outstanding ‘non-COVID-19’ tax debts. Chartered Accountants Ireland requested an extension to the deadline in a letter to the Revenue chairman, Niall Cody.

As confirmed in a Revenue eBrief, the extended deadline allows for taxpayers and their accountants to finalise a PPA covering non-COVID-19 tax debt in respect of liabilities due by 30 September 2020.

Revenue confirmed the extension to the deadline in a press release on Wednesday evening, which noted the challenges that taxpayers and their agents are experiencing at this time. Over €46 million of tax debt is now covered by a PPA to which the reduced interest rate applies.

Collector General, Joe Howley …” strongly encouraged the uptake of this opportunity and of the extended deadline that now applies”. Where a PPA is in place, a business will qualify for tax clearance, which may allow access to the EWSS and other schemes.

Revenue confirmed to Chartered Accountants Ireland that a reduced interest rate PPA would be available for a 2019 income tax liability, where preliminary tax was underpaid in 2019. As the due date for the full liability reverts to the date the preliminary tax was due (i.e. 31 October 2019) the liability is due before 30 September 2020. Accrued interest at the full rate from 31 October 2019 to the date of the PPA applies in such a scenario. 

The Revenue information booklet provides detailed information on the reduced interest rate on non-COVID-19 tax debt.