As we reported in our bulletin on the July Jobs Stimulus, as part of the package of measures, the Government introduced a reduced interest rate of 3% per annum to apply to Phased Payment Arrangements for tax debts that do not qualify for the Debt Warehouse scheme, i.e. older liabilities and tax debts not associated with COVID-19. Taxpayers that have declared but unpaid tax debts can avail of this reduced rate provided they agree a Phased Payment Arrangement with Revenue before 30 September 2020. The 3% rate represents a significant reduction from standard interest rates on late payment of taxes of 8% and 10% per annum and is applicable from 1 August 2020 or from the date of the agreed Phased Payment Arrangement, whichever is later.
The reduced rate is available across all tax types and to agreements that are already in place as well as new agreements made before 30 September 2020.
This reduced interest rate measure is also available to taxpayers with undeclared liabilities from tax periods that pre-date the COVID-19 phase, provided the liabilities are declared and the issues regularised, by 30 September 2020 under a self-correction or qualifying disclosure as provided for in Chapter 3 of the Code of Practice Revenue Audit & Other Compliance Interventions.
To avail of this measure, taxpayers must agree a Phased Payment Arrangement with Revenue before 30 September 2020.