Revenue have extended the deadline to apply for a phased payment arrangement with Revenue on ‘Non-Covid 19’ debts. Taxpayers, or tax agents acting on their behalf, now have until 31 October 2020 to finalise payment arrangements covering non-Covid tax debts.
The reduced interest rate of 3% per annum will apply for outstanding ‘non-Covid-19’ tax debts, where there is a phased payment arrangement in place between the business or individual and Revenue by 31 October 2020. ‘Non-Covid-19’ tax debts are debts that cannot be warehoused, i.e. older liabilities, including those from a compliance intervention, and debts not associated with COVID-19. The 3% rate, which applies from the date of the agreement, is available across all tax types and is a significant reduction from the standard interest rates of 8% and 10% per annum that normally apply to late payments of tax.
Revenue is strongly encouraging individuals or businesses who have not yet agreed payment arrangements in respect of ‘non-Covid-19’ tax debts with Revenue, and who now wish to avail of the reduced interest rate, to ensure the following steps are completed by 31 October 2020:
- ensure ‘non-Covid-19’ tax debt, across all tax types, is quantified through the filing of all relevant tax returns, and
- formally agree a phased payment arrangement with Revenue.
Normal interest rates on late payment of taxes of 8% and 10% per annum will continue to apply to outstanding ‘non-Covid-19’ debts that are not included in a phased payment arrangement with Revenue by 31 October 2020. The reduced interest rate will also not apply to unpaid taxes where Court proceedings for the recovery of that debt have been initiated or where judgments have already issued.
If you would like to speak to one of our tax team professionals, please contact us:
+353 42 933 9955