Taxpayers who do not meet their tax obligations may face penalty or interest charges. To avoid these charges, ensure you pay the full amount of tax you owe by the due date.
The main charges for failing to meet tax obligations are the:
- General interest charge (GIC) - Applies to a variety of situations,whenever outstanding amounts are due to the Tax Office.
- Failure to lodge on time penalty (FTL) - If a return is not filed by the due date.
Where a tax payer is audited and an amended assessment is raised, further penalties of up to 75% of the additional tax levied may be applied.
|IMPORTANT DISCLAIMER: This article is published as a guide to clients and for their private information. This article does not constitute advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.|