Civil Offences & Penalties

Civil Offences and Penalties
The civil offences that a taxpayer could be guilty of are:
  1. Filing returns late.
  2. Non-filing of electronic returns.
  3. Late payment of tax.
  4. Shortfall of payments.

These offences result in:

  • Late filing penalties.
  • Non-electronic filing penalties.
  • Late payment penalties.
  • Shortfall penalties.

These are explained in the following pages.

1. Late Filing

The law requires you to file your tax returns by the due date, that is, you must file on time. If you don’t you may have to pay late filing penalties. Where income tax and ACC tax returns are concerned a penalty may be charged only if the IRD has given you sufficient notification that a penalty will be imposed if the returns that are required are not filed. They will do this by letter or by public notification that a late penalty could be imposed.

Where employer monthly schedules are late the penalty is imposed automatically and then the IRD will notify you that the penalty has been levied. The types of returns that could be affected under the late filing provisions are:

• IR3 and IR4 income tax returns.
• ACC Residual Claims Levy Statement (IR68A)
• Employer Monthly Schedules (IR34A)

How much is the Late Filing Penalty?

For income tax, the amount of the late filing penalty will depend on the net income involved. Net income is the gross income less allowable deductions. If you haven’t filed a return the penalty will be based on the amount of income that was shown in your previous year’s tax return. Once you have filed the return the penalty can then be adjusted in line with the actual income shown on the return, rather than being based on the previous years.

The penalty for employer monthly schedules and PAYE and ACC statements being filed late is $250 per schedule or statement.

The following are the late filing penalties for income tax returns, ACC statements and employer monthly schedules:

Penalties for Late Filing of Income Tax Returns

Net Income Penalty
Less than $100,000 $50
$100,000 to $1 million $250
More than $1 million $500

The late filing penalty does not apply to GST and fringe benefit returns.