Penalty tax is imposed where a taxpayer fails to meet certain obligations. This includes the underpayment, late payment or failure to pay tax.
The penalty tax rate imposed ranges from 25 per cent to 90 per cent of the tax payable depending on the level of culpability.
Penalty tax may be reduced if you make a voluntary disclosure before the commencement of an investigation. We encourage you to voluntarily disclose any discrepancies you discover. If you obstruct or hinder an investigation, penalty tax may be increased.
Further information about penalties is available in:
- Revenue Circular - Penalty Tax GEN006.1 [RTF, 455Kb], [PDF, 488Kb]; and
- Revenue Circular - First Home Owner Grant Offences Penalties and Interest FHOG001.1 [RTF, 324Kb], [PDF, 119Kb]
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