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IR4J Question 10 Imputation penalty tax

Imputation penalty tax of 10% of the debit closing balance is also payable by 20 June 2020. Work out the 10% penalty in Box 10.

Inland Revenue will charge you interest if you don’t make your tax payment by the due date. They may also charge you a late payment penalty if you miss a payment.

If your tax remains unpaid, Inland Revenue will charge an initial 1% late payment penalty on the day after the due date. They will charge a further 4% penalty if there’s still an amount of unpaid tax (including penalties) seven days after the due date.

Every month the amount owing remains unpaid after the due date Inland Revenue will charge a further 1% incremental penalty.

Interest and late payment penalties are not charged on outstanding amounts of $100 or less.


If you’re unable to pay your tax by the due date, please call Inland Revenue. They will look at your payment options, which may include an instalment arrangement, depending on your circumstances. Arrangements can be agreed on, before or after the due date for payment. There are greater reductions in the penalties charged if the arrangement is made before the due date.

For more help

See the guide Penalties and interest (IR240).

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