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(1) A person who fails to pay tax by the date on which the tax ispayable is liable to pay interest for each month or part of a month forwhich any part of the tax is outstanding.

(2) The interest is calculated as one hundred and twenty-five percentof the statutory rate, compounded monthly, applied to the amountoutstanding at the start of the period.

(3) For the purpose of calculating interest under subsection (1)

(a) tax is payable

(i) in the case of an adjusted assessment, on the dateon which tax is payable under the original assessment;and

(ii) in any other case, on the date specified in section46; and

(b) an extension granted under section 30 or 47 or a suspensionunder section 42(6) shall be ignored.

(4) Where a withholding agent is liable for interest for failing topay withholding tax in respect of a payment made by the agent, the agentmay not recover the interest from the person subject to the withholdingtax.