Penalties & Interest Calculator
Estimate penalties and interest on outstanding tax amounts.
Understanding Penalties and Interest
Late Payment Penalty
A late payment penalty is imposed when tax is not paid by the prescribed due date. This penalty is usually calculated as a fixed percentage of the outstanding tax.
- Typically 10% of unpaid tax
- Raised immediately after the due date
- Calculated on the outstanding tax amount
Understatement Penalty
An understatement penalty is raised where tax has been understated due to errors, negligence, or intentional conduct. The percentage depends on the behaviour involved.
- Ranges from 0% to 200%
- Calculated on the tax shortfall
- Raised after audit or verification
Interest on Late Payment
Interest is charged on outstanding tax amounts for the period they remain unpaid. Interest continues to accrue until full payment is made.
- Calculated daily
- Based on prescribed annual interest rate
- Charged in addition to penalties
Important: This calculator provides estimates only. Actual penalties and interest
may vary based on legislation, discretion, or specific circumstances.