Revenue extends deadline to avail of reduced rate of interest on outstanding non-Covid-19 tax debts as demand sees €46 million covered by the measure
The July Jobs Stimulus Package included an incentive whereby a reduced interest rate of 3% per annum is applied to outstanding ‘non-Covid-19’ tax debts, once a payment arrangement is agreed between a taxpayer and Revenue by 30 September 2020.
A significant number of taxpayers, or tax agents acting on their behalf, have already taken up this opportunity with over €46 million of tax debt now covered by payment arrangements to which the reduced 3% interest rate applies.
Given the uptake of this measure to date and recognising the challenges that taxpayers and tax agents are experiencing at this time, Revenue has today (30/09/2020) announced a four-week extension to the initiative. Taxpayers, or tax agents acting on their behalf, now have until 31 October 2020 to finalise payment arrangements covering non-Covid tax debts.
Commenting on the announcement of the extension today, Collector-General, Joe Howley, said:
"I strongly encourage the uptake of this opportunity and of the extended deadline that now applies. The 3% interest rate available to taxpayers under this measure is a significant reduction from the standard interest rates of 8% and 10% per annum that normally apply to late payments of tax."
"Putting in place a payment arrangement by 31 October means that you or your business will qualify for Tax Clearance and, provided all other conditions are met, will guarantee access to other key supports such as the Employment Wage Subsidy Scheme (EWSS)."
Revenue recognises that the past six months has been an extremely challenging time for both taxpayers and tax agents and the extension of the 3% reduced interest measure is part of Revenue’s ongoing supportive approach to businesses during the current crisis. The extended timeline will ensure that taxpayers and tax agents can maximise the opportunities afforded to regularise their tax payment obligations at a much-reduced cost.