111AAY Interest on overdue amounts

Summary

This section provides the mechanism for the calculation of the interest payable on outstanding amounts relating to this Part in respect of a given period of default.

Details

(1) This subsection provides that any of amount of tax that remains unpaid shall be liable to statutory interest calculated in accordance with subsection (2).

(2) This subsection provides the formula used to calculate the amount of interest due as follows. The amount of tax unpaid is multiplied by the number of days that amount remains unpaid at the rate specified in section 1080(2)(c).

Where-

T is the GloBE tax which remains unpaid,

D is the number of days (including part of a day) in the period during which the tax remains unpaid, and

R is the rate, represented by P in the formula T x D x P in section 1080(2)(c)(i), that would apply under that formula if the GloBE tax due under this Part was tax within the meaning of that section, and the period during which the tax remains unpaid was the period of delay, within the meaning of that section.

(3) This subsection applies the provisions of subsections (3) to (5) of section 1080 to interest payable under subsection (1).

Relevant Date: Finance Act 2024