What are the penalties for filing my tax return late?

Late filing can attract a late filing penalty, and if tax is owing and not paid by the due date, late payment penalties and use of money interest can also apply under the Tax Administration Act 1994 and the Income Tax Act 2007. The amount depends on your income level and how much tax is unpaid. Inland Revenue has discretion to remit penalties in cases of a reasonable cause for the delay, such as serious illness, or where you have a good compliance history, so you can write and ask for remission, explaining the circumstances and providing supporting evidence. It helps to file the outstanding return as soon as possible, even if you cannot pay in full, since penalties for non-filing are often more serious than those for late payment, and you can arrange an instalment plan for the tax owing.