What are the penalties for late filing or paying tax in New Zealand?

Inland Revenue charges penalties for both late filing and late payment of tax in New Zealand: **Late Filing Penalties:** - NZ$100 penalty immediately after the due date (for returns with income under NZ$100,000) - NZ$250 if not filed within 30 days of the initial penalty - NZ$500 if not filed within 90 days - NZ$1,000 if not filed within 150 days **Late Payment Penalties (Incremental):** - 1% late payment penalty applied the day after the due date - Additional 4% if still unpaid 7 days after due date - Further 1% per month if still unpaid after that **Use-of-Money Interest:** In addition to penalties, IR charges use-of-money interest on unpaid tax from the day after the due date. The interest rate changes periodically — check IR's website for the current rate. If you are struggling to pay, contact IR early. They can arrange instalment plans and may waive some penalties for first-time late payers with a good reason.

• Late filing: NZ$100 immediately, increasing over time
• Late payment: 1% on day after, additional 4% after 7 days
• Plus use-of-money interest on unpaid amounts
• Contact IR early if you can't pay — payment plans available
• First-time late filers may get penalties waived with good reason