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 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).
- 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.
- Interest on the
amount of tax you owe if you have underpaid your tax. The interest
rates charged are based on market rates.
- 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.
For more information refer to the IRD's Obligations, Interest & Penalties
Guide