Tax Payer Penalties

Taxpayers who do not meet their tax obligations may face penalty or interest charges. To avoid such charges, you should pay the full amount of tax you owe by the due date.

The main kinds of charges for failing to meet tax obligations are:

  • shortfall penalty where the correct amount of tax is higher than the amount you paid (eg, because of an understatement of tax, or where the amount of a refund or loss is reduced).
  • late payment penalty if you post or deliver a payment to us after the date it was due.
  • late filing penalty if you do not file a return by the due date.
  • Interest on the amount of tax you owe if you have underpaid your tax. The interest rates charged are set by Inland Revenue.
  • EMS non payment penalties where you file an employer monthly schedule but do not pay the full amount payable on that schedule. These penalties are in addition to any of the other penalites that may also then be payable.

Paying on time changes from 1 October 2014

From 1 October 2014, payments posted to Inland Revenue need to be received by them on or before the due date to avoid payment penalties and interest. This means cheque payments can no longer be posted on the date they are due.

Also payments need to be received on or before provincial anniversary days. All other national public holiday payment times remain unchanged, with a payment being accepted as on time if it is received on the next working day.

For more information give us a call or refer to the Inland Revenue's Obligations, Interest & Penalties Guide.

We can help

If you can't pay your tax in full talk to us we can help make arrangements with Inland Revenue.


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