# Tax interest (delay (penalty) interest)

- Canonical URL: https://www.gerhardmerk.de/tax-interest-delay-penalty-interest
- Post ID: 591682
- Modified: 2023-07-25T21:13:50+00:00
- Language: en

## Definition

Interest charged by the financial administration of a state on tax arrears; it represents compensation for the use by the defaulting taxpayer of money due to the state. - A distinction is made between default interest, respite interest and moratorium interest. - Experience shows that the higher the tax interest rate, the more tax debtors settle their accounts. The German Tax Interest Act of August 11, 1923, gave the Reich Minister of Finance the right to impose additional surcharges beyond the twenty-four percent initially set at that time. - See Remission. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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