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:
-
a late payment penalty if you
post or deliver a payment to us after the date it was due
-
a late filing penalty if you
do not file a return by the due date
-
a 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)
-
interest on the amount of tax
you owe if you have underpaid your tax. The interest rates
charged are based on market rates.
For more information refer to the
IRD's Taxpayer Obligations, Interest & Penalties booklet.
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