Tax Penalties Deduction Percentage on Various Instances



Lack of Reasonable Care Unacceptable Tax Position Gross Carelessness Abusive Tax Position Evasion
20% 20% 40% 100% 150%

Tax penalties may be reduced by up to 100% if disclosure is made to the IRD before an audit, by 40% if disclosure is made before the first meeting with IRD, or by 75% if the shortfall is temporary. A 50% good behaviour discount may also apply.


Return Type Penalty
Income tax $50 to $500
Employer monthly schedule $250
GST $50 or $250


Date  Penalty
Day following due date 1%
Seven days following due date 4%
Each month following due date 1%


If you have more inquiries on this topic, please feel free to contact your wellington accountant.



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