Tax Payer Penalties

What are tax payer penalties?

As you might expect – if you fail to pay your taxes by the due date, you may receive a penalty or interest charges on the amount you owe.

Are the different types of tax payer penalty?

Yes – if you receive a penalty, it will most likely fall into one of the following categories:

  • Shortfall Penalty
  • Late Payment Penalty
  • Late Filing Penalty
  • EMS non-payment penalties

Your actual amount of tax owing is higher than the amount you have paid. This can occur if there is an understatement of tax or if the amount of a refund is reduced. Should you post or deliver a payment to the IRD after the due date, you may receive a late payment penalty. You may receive a late filing penalty if you do not file your return by the due date.

If you have underpaid your tax, you will need to pay interest on the amount of tax you owe. The interest rate you’ll pay is based on market rates. You may receive an EMS non-payment penalty if you file your employer monthly schedule but don’t pay the full amount owing, according to the schedule. These penalties could be in addition to any other penalties which may become payable.

Need more info on tax payer penalties?

We’re here to help you avoid ever receiving tax payer penalties, but should you have been issued with a penalty, or you just wanted to discuss penalties further, please give us a call and we’ll happily talk it through with you. You can also find out more from the Obligations, Interest & Penalties Guide on the IRD website.

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