GST Return

GST Penalties and Interest Charges

Failing to remit GST owed can incur a range of penalties and interest charges, such as:

• A 1% charge on unpaid GST from the first day the GST return was due, escalating to 4% if unpaid after 7 days. Additionally, a 1% charge accrues for each month without settling the GST.
• A fine of NZD 250 for delayed filing of GST returns.
• Penalties ranging from 20% to 150% for under-declarations of GST.
• Interest fines of 8.27% for instances of under-declared GST.
• GST offences may be treated as criminal offences, potentially leading to imprisonment and additional fines.

Prepare and Pay GST Effortlessly with Cloud Accounting Software

When undertaking business forecasting, whether for profit or cash, it's crucial to account for the associated GST implications. This includes considerations of both the tax you'll need to pay and the tax you'll be passing on to customers.

When you hire us as your dedicated tax accountant in Auckland, we ensure you stay compliant with all tax regulations. As official partners of cloud accounting software like Xero, we automate GST calculations for every transaction.

This simplifies the GST return process and allows direct submission to Inland Revenue (IR) through the software. With Xero, you can accurately track, review, and manage GST transactions while gaining real-time insights into your obligations.

Partnering with us provides clarity and peace of mind, backed by our expertise in managing complex GST matters.

Enjoy Tax Savings Through Strategic Planning

At Allan Chartered Accounting, we help businesses across New Zealand enjoy tax savings through legitimate tax reduction strategies. Unlike traditional firms that only operate during tax season, our accountants and tax experts in Torbay support you year-round.

From tax planning and structuring to preparation and filing, we work to ensure you never pay more tax than required.

Frequently Asked Questions

I have overdue tax returns to file. Can you help?

Yes, absolutely. If you have overdue GST returns from previous years, simply share the required information with us. Our accountants will review your accounts thoroughly and identify all allowable expenses.

We conduct detailed checks of bank statements to ensure accurate claims, helping minimise your tax bill and maximise savings.

I have received IRD penalties and interest on late GST returns. What should I do?

If you're facing IRD penalties and interest, there’s no need to panic. We specialise in reducing your IRD liability and exploring eligibility for penalty and interest remission.

Our team has successfully assisted many clients in securing remissions and resolving compliance issues efficiently.

Can you negotiate late tax payment terms with the IRD?

Yes. We negotiate directly with IRD to secure the most favourable repayment terms for your business, including:

• Remission of IRD penalties for overdue returns
• Extended repayment plans
• Interest-only repayment arrangements

If you’re dealing with late tax or GST returns, reach out today — we’re here to help you achieve the best possible outcome.

What are common GST mistakes to avoid?

Avoid these common GST pitfalls to stay compliant:

• Registering for GST unnecessarily before reaching the $60,000 threshold
• Poor record keeping of receipts and invoices (7-year record requirement)
• Misunderstanding low turnover rules for GST-registered businesses
• Overlooking GST on business assets during deregistration