Last Thursday, 15th January 2015, for many entities (read our post about what an entity is) was the GST Due Date for the GST Period 1st October 2014 to the 30th November 2014. If you were you unable to pay the GST due then please note that: –
- An initial 1% late payment penalty has been charged on the day after the due date.
- A further 4% penalty will be charged if there is still an amount of unpaid tax (including penalties) at the end of the 7th day from the due date.
- Every month the amount owing remains unpaid, a further 1% incremental penalty will be added.
- As well as the penalties above you will be charged interest on tax that remains unpaid until it is eventually paid.
There has been talk recently on how the penalties mount up increasing the debt far beyond the original GST amount owing.
Believe me when I say that through experience in dealing with clients, who have come to me as a result of not addressing their unpaid GST, I have seen the financial hardship they have endured due to IRD Late Payment Penalties. I have also seen the health issues e.g. emotional, stress related and depression etc. not to mention the effect it has on the person’s relationships.
Don’t be like an Ostrich and “bury your head in the sand. If you are having difficulties meeting your obligations address it now and start by reading your options during financial difficulty.
I personally am at the point now that I am reluctant to take on a case where a person has ignored the advice above because if you can’t pay the IR what’s due how can you pay me to address your situation which can take a considerable length of time.
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If you want to discuss this further or you have any questions please contact us.
Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.