• Interest on the amount of tax you owe if you have underpaid your tax. The interest rates charged are based on market rates.
• 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 IRD after the date it was due
• A shortfall penalty where the correct amount of tax is higher than the amount you paid (e.g., because of an understatement of tax, or where the amount of a refund or loss is reduced). These penalties can be as high as 150% (for evasion) and may include imprisonment for serious instances of evasion
• EMS non-payment penalties are when 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 penalties that may also then be payable
  

Solutions such as tax pooling can also be used to ease taxpayer concerns and the resulting exposure to the use of money interest.

For more information about tax pooling and your exposure to tax penalties, give us a call. For more information about tax penalties, refer to the IRD’s Obligations, Interest & Penalties Guide.

Tax facts supplied by CCH