Michael Noonan (Limerick City, Fine Gael)
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I am not in a position to make any comment on motor tax as this is not a charge which falls within my area of responsibility. However, my response on the general point raised by the Deputy regarding the payment of tax by instalments is that the abolition of these arrangements would impose an unacceptable cost on the Exchequer.

A core provision in the Revenue Commissioners' powers to collect the taxes and duties within their care and management is the provision for specific monetary sanctions on taxpayers in the event that payments are made late or not made at all. These monetary sanctions can comprise interest, surcharges and penalties of various kinds and exist principally to ensure the Revenue Commissioners are not placed in the invidious position of becoming an involuntary interest-free creditor to individuals or businesses as regards the late payment of tax. Equally, where repayments of tax to taxpayers by the Revenue Commissioners are unreasonably delayed, provision is also made to include interest to compensate the taxpayer for the temporary lack of those funds.

From the overall perspective of servicing the national debt as well as funding the provision of public services generally, the Exchequer cannot be placed at the mercy of taxpayers as to when they may or may not choose to pay their taxes. While the payment of certain taxes, such as local property tax, may provide for instalment payments without interest, this is not generally true in circumstances in which a statutory payment deadline has been missed.

The argument that tax payment deadlines are unfair is unsustainable for the very good reason that, in general, the events which have given rise to the liabilities will have already occurred by the time the tax has to be paid. I am thinking of VAT or the remittance of PAYE deducted by employers. There could be no justification for fiduciary taxes such as these to be paid by instalment. In summary, there is no unfairness in the current system and the existence of these sanctions is fully justified. For this reason I am not prepared to accept the Deputy’s amendment.