Who benefits from SEPA change?

Sir, – "The latest returns showed the State collected nearly €650 million less than expected in tax last month" (Front page, February 5th). The anomaly was blamed on the introduction of SEPA (Single Euro Payments Area) system which slowed down the Revenue Commissioners' collection of VAT, corporation tax and employers' PAYE and PRSI.

Instead of payments being processed within two or three banking days it will now take seven banking days.

Where will the funds be held during this time and who will benefit from the overnight rates?

Another banking contribution to the economy! – Yours, etc,

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BRIAN R BUCKLEY,

Oughterard,

Co Galway.