Not paying your tax on time just got more expensive
July 5, 2019
When your tax (income tax, GST, PAYE, etc.) is not paid on time, Inland Revenue charges late payment penalties and interest. The late payment penalties vary depending on the type of tax and the amount. Interest is also applied on the unpaid tax and on the penalties.
The rate of interest charged by Inland Revenue will increase from 29 August 2019 to 8.35% per annum (from 8.22% per annum).
At the same time, if IRD owes you a refund, the interest they will pay you will decrease from 1.02% per annum to 0.81% per annum.
While paying tax on time and in full is the most preferred outcome, it is now, if possible, even more preferred. If you are unable to do this, please contact us to either apply to IRD for a repayment arrangement to avoid late payment penalties or, depending on the tax, arrange for the financing of tax via tax pooling funds with the tax pooling intermediary.
Contact us today for your no-obligation consultation.