What are the penalties for late tax payment?

The penalties for late tax payment vary depending on the specific circumstances. If a taxpayer fails to pay their tax on time, they may be subject to late payment penalties. These penalties usually incur daily interest charges on the outstanding amount, accruing until the tax is paid in full. Additionally, in some cases, a penalty may be imposed on the taxpayer for not meeting tax payment deadlines. The penalty amount is typically a percentage of the unpaid tax owed and may increase the longer the taxpayer delays payment. To avoid these penalties, it is advised to ensure timely tax payment and reach out to the IRD if there are difficulties in meeting payment obligations.