Section 6 of the Act provides for the introduction of section 1080A TCA 1997. This section introduces a reduced interest rate of 3 percent per annum that will apply for outstanding non-COVID-19 tax debts, where the taxpayer agrees a phased payment arrangement (PPA) with Revenue before 30 September 2020. Revenue’s new Information booklet also provides guidance on this provision.

The 3 percent rate is available across all tax types and to existing PPAs already in place with Revenue before September. The reduced rate applies to projected interest for the lifetime of the payment arrangement. Almost €90 million in outstanding taxes is being paid by way of PPA, currently. Revenue will contact existing PPA customers to ensure they benefit from the revised rate.

Applications for PPAs can be made through the ROS phased payment facility. Alternatively, contact the Collector-General’s Division on 01-738663. The online application and PPA process has been simplified, allowing for:

• Application without requirement to supply a full suite of supporting documentation
• Increased repayment term of up to 60 months
• Ability to defer payments for up to 12 months

Businesses availing of the reduced interest rate for non-COVID-19 debts will qualify for a tax clearance certificate if they otherwise meet the normal qualifying conditions. A tax clearance cert will not be available to taxpayers who do not have a PPA in place for outstanding non-COVID-19 debts, which will preclude their entry to the EWSS.