Shannon Development is committed to making every effort to pay its suppliers promptly. In this regard suppliers can help by ensuring that
(In the case of all public sector contracts of a value of €10,000 (inclusive of VAT) or more within any 12-month period, the contractor (and agent or sub-contractor as appropriate) will be required to produce either a valid tax clearance certificate or a C2 certificate. This is a mandatory requirement. Full details on tax clearance procedures may be found on the Revenue Commissioners website)
Payment of invoices by Shannon Development is governed by the Prompt Payment of Accounts Act, 1997 as amended by the European Communities (Late Payment in Commercial Transactions) Regulations 2002. The legislation provides for the payment of interest on valid invoices which are unpaid after 30 days from the date of receipt. Shannon Development considers an invoice received only when it is received by Accounts Payable, Finance, quoting a valid Purchase Order number. Interest is calculated in respect of the period starting on the date after the due date and ending on the date when payment is made.
From the 1st July 2010, the late payment interest rate is 8% per annum (that is based on the ECB rate of 1% plus the margin of 7%). That rate equates to a daily rate of 0.022%. Penalty interest due for late payments should be calculated on a daily basis. The ECB rate can be checked on the Central Bank and Financial Services Authority of Ireland website or on the European Central Bank website.
Shannon Development has ten working days to advise suppliers in writing of any queries and/or defects with the invoice that prevent payment being made. Following acceptance by the Shannon Development of the corrected invoice, Shannon Development will endeavor to issue payment within 15 days.
The legislation does not oblige payment to be made to a supplier who has failed or refused to comply with a request to produce a tax clearance certificate and it expressly extends the statutory time limit for payment where there are delays in furnishing a tax clearance certificate. Also the Act does not affect the deduction of withholding tax from any payment to a supplier.
The Government extended the non-statutory requirement applicable to Central Government Departments to all public bodies from July 2011, to reduce the payment period by Public Bodies to their suppliers from 30 to 15 days. Every effort, consistent with proper financial procedures, is being made to ensure that all suppliers are paid within this timeframe. The links below show Shannon Developments performance with regard to the 15 day payment requirement since its introduction.
Period 2 October - December 2011
Period 1 July - 30 September 2011