S.I. No. 242/1988 - Social Welfare (Interest) Regulations, 1988.

S.I. No. 242 of 1988.

SOCIAL WELFARE (INTEREST) REGULATIONS, 1988.

The Minister for Social Welfare in exercise of the powers conferred on him by section 3 of the Social Welfare (Consolidation) Act, 1981 (No. 1 of 1981), and section 15 of that Act as amended by section 9 of the Social Welfare Act, 1988 (No. 7 of 1988), hereby makes the following Regulations:—

1. These Regulations may be cited as the Social Welfare (Interest) Regulations, 1988.

2. In these Regulations—

"arrears of employment contributions" means employment contributions which were due to be remitted to the Collector- General on or before the 31st day of December, 1987, in accordance with the provisions of article 7 of the Principal Regulations and Part V of the Income Tax (Employment) Regulations, 1960, ( S.I. No. 28 of 1960 ) as applied to employment contributions;

"the Principal Act" means the Social Welfare (Consolidation) Act, 1981 (No. 1 of 1981);

"the Principal Regulations" means the Social Welfare (Collection of Employment Contributions by the Collector-General) Regulations, 1979 ( S.I. No. 77 of 1979 );

"relevant interest" means interest, payable under article 13 of the Principal Regulations for any period prior to the 1st day of March, 1988, in respect of arrears of employment contributions.

3. In the case of a person who has complied with the provisions of subsection (2) (b) of section 72 of the Finance Act, 1988 (No. 12 of 1988)—

( a ) relevant interest which is owed by him and which is not remitted on the expiration of the period referred to in the said subsection (2) (b), shall be waived, and

( b ) proceedings shall not be initiated or continued for the recovery of any fine or penalty which the person may have incurred, directly or indirectly, under any of the provisions of the Principal Act or the Principal Regulations in relation to arrears of employment contributions.

4. Notwithstanding the provisions of article 13 of the Principal Regulations and article 3 of these Regulations any relevant interest which is paid by a person on or after the 27th day of January, 1988—

( a ) in the case of a person who has complied with the provisions of subsection (2) (b) of section 72 of the Finance Act, 1988 , shall be refunded to him, or

( b ) if he is not such a person, may be treated as a payment in respect of any amount (which if he were such a person, would have been paid or remitted by him in accordance with the said subsection (2) (b)) if, but only if, he would by reason of such treatment be a person to whom the said section 72 applies and any relevant interest paid in excess of the amount aforesaid shall be refunded to him.

5. Article 3 shall not apply to any relevant interest, fine or other penalty that:—

( a ) in the case of a fine or other penalty, is imposed by a court under the Principal Act or the Principal Regulations, or

( b ) in the case of relevant interest, is ordered by a court in any proceedings for the recovery of employment contributions or interest to be paid by a person.

GIVEN under the Official Seal of the Minister for Social Welfare

this 21st day of September, 1988.

MICHAEL WOODS,

Minister for Social Welfare.

The Minister for Finance hereby consents to the foregoing Regulations.

GIVEN under the official seal of the Minister for Finance this 21st day of September, 1988.

RAY MACSHARRY,

Minister for Finance.

EXPLANATORY NOTE.

The purpose of these Regulations is to give effect, insofar as PRSI contributions are concerned, to the Interest Amnesty Scheme under which interest charges and penalties in respect of arrears of tax, PRSI, health contributions, employment and training levy and income levy which were due and payable on or before 31 December, 1987 are waived, provided that such arrears are paid on or before 30 September, 1988.

In the case of PRSI the interest being waived is that which was due up to 29 February, 1988.