Reassessed tax may incur the following penalties:
Reassessed tax
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Lack of Reasonable Care
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20%
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Unacceptable Tax Position
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20%
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Gross Carelessness
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40%
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Abusive Tax Position
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100%
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Evasion
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150%
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The above penalties may be reduced for disclosure before an audit by 75% or during an audit by 40%. Above penalties may be increased by 25% for obstruction.
Late Payment
If you don’t pay your taxes or duties on time, you will face standard penalties for late payment.
Late Payment
If you don’t pay your taxes or duties on time, you will face standard penalties for late payment.
- All initial late payment penalties imposed on and after 1 April 2002 are staggered in two phases.
- An initial 1% late payment penalty will be charged on the day after the due date.
- A further 4% penalty will be charged if there is still an amount of unpaid tax (including penalties) at the end of the 7th day from the due date.
- Every month the amount owing remains unpaid a further 1% incremental penalty will be added.
