Finance Act, 1993

Interest on tax.

117.—In relation to a charge for tax arising by virtue of section 110

(a) the tax shall be due and payable on the valuation date;

(b) simple interest to the date of payment of the tax shall, from the first day after the expiration of the period of 9 months commencing on the valuation date, be payable upon the tax at the rate of one and one-quarter per cent. per month or part of a month, without deduction of Income Tax, and shall be chargeable and recoverable in the same manner as if it were part of the tax;

(c) notwithstanding the provisions of paragraph (a), where, during the said period of 9 months, a payment is made on foot of the tax, the tax due at the time of the payment shall be discounted by an amount appropriate to the payment, such discount being calculated on tax at a rate per cent. equal to one and one-quarter per cent. multiplied by the number of months in the period from the date of payment to the date of the expiration of the said period of 9 months, and for this purpose a month shall include a part of a month:

Provided that insofar as the payment is repaid by the Commissioners in accordance with the provisions of section 46 of the Principal Act, no discount shall be appropriate to the payment;

(d) notwithstanding the provisions of paragraph (b), the interest payable upon the tax shall not exceed the amount of the tax.