Revenue Note for Guidance

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Revenue Note for Guidance

Chapter 6

Interest on overdue tax, surcharge for late filing and penalties

Summary

This Chapter provides for interest on underpaid vacant homes tax, a surcharge for the late filing of a vacant homes tax return and the application of penalties for failing to comply with vacant homes tax requirements.

653BE Interest on overdue tax

Summary

This section provides for interest on vacant homes tax paid late, to be applied.

Details

(1) Interest applies from the date on which vacant homes tax becomes due and payable until it is paid in accordance with the formula for calculating the tax set out in subsection (2).

(2) This subsection provides the formula for determining the interest payable. The formula is:

T x D x R

where -

T is the vacant homes tax payable which remains unpaid,

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

R is the rate, represented by P in the formula T x D x P in section 1080(2)(c) TCA 1997, that would apply under that formula if the vacant homes tax payable was tax, within the meaning of that section, and the period during which the vacant homes tax remains unpaid was the period of delay, within the meaning of that section.

(3) Interest on overdue tax will be:

  • payable without the deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for the purpose of the Tax Acts,
  • a debt due to the Minister for Finance,
  • payable to Revenue.

(4) Subject to subsection (5), the following will apply to the recovery of unpaid interest and the interest will be treated as if it is unpaid tax:

(5) In legal proceedings for the recovery of interest, a certificate signed by a Revenue officer stating the amount of interest due and payable by the person against whom the proceedings have been instituted:

  • will, until the opposite is proved, be evidence that the stated amount of interest is due, and
  • can be submitted in evidence without proof and will be deemed, until the opposite is proved, to have been signed by a Revenue officer.

Relevant Date: Finance Act 2024