Use-of-money interest rates to rise
Order in Council raises the use-of-money interest rates to 14.24% for underpayments and 6.66% for overpayments from 8 Mar 2007.
Use-of-money interest rates on underpayments and overpayments of tax are to rise in line with current market interest rates. The new rates are:
Underpayment rate: 14.24% (up from 13.08%)
Overpayment rate: 6.66% (up from 5.71%)
The new rates apply from 8 March 2007. The rates are reviewed regularly to ensure that they are aligned with market interest rates and are based on the Reserve Bank survey of interest rates.
The changes were made by Order in Council on 12 February 2007.
Taxation (Use-of-Money Interest Rates) Amendment Regulations 2007 (2007/13)