To avoid penalties or interest charges for failing to meet your tax obligations, you should pay the full amount of tax you owe by the due date.
Failure to meet your tax obligations may result in one or more of the following:
- A late filing penalty if you do not file a return by the due date
- A late payment penalty if you post or deliver a payment to the IRD after the date it was due
- 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
- Employer monthly schedule non payment penalties where you file an EMS but do not pay the full amount payable on that schedule
For more information on Tax Payer Penalties, please talk to us or visit the IRD website.