DAMN THE TAXMAN(THE BEAST)!!!!

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One law for taxman, another for taxpayers

Revenue will pay zero interest on overpaid tax, but charge 3.5 per cent on any tax due

 

 

Mark Atherton

 

 

The dramatic fall in interest rates has prompted the Revenue to declare it will, from next Tuesday, pay zero interest on money it owes to taxpayers.

Previously where an individual or company had overpaid tax, they would be entitled to an interest payment ( at an annual rate of 0.75 per cent) on the sum overpaid. The same would apply to any sum overcharged by the Revenue.

But from now on zero interest will be paid on overpaid income tax, capital gains tax, VAT and stamp duty land tax. The same zero interest rate will apply to sums overpaid by many companies.

However, as Rupert Shiers, a partner with McGrigors, the leading law firm, points out: “Taxpayers who owe money to the Revenue will not be able to take advantage of this zero per cent offer.” Instead they will continue to pay interest on any outstanding sum, though at a reduced rate of 3.5 per cent, compared with the previous rate of 4.5 per cent.