SPS 05/11
Issued
15 Nov 2005

Instalment arrangements for payment of tax debt (Nov 05) (WITHDRAWN)

Withdrawn SPS 05/11 Instalment arrangements for payment of tax debt (Nov 05). Statement provided for historical purposes only.

Withdrawn

This statement has been withdrawn and is provided for historical purposes only.

Introduction

  1. This Standard Practice Statement (SPS) sets out Inland Revenue's practice on providing relief by way of an instalment arrangement when taxpayers are in debt.

  2. Please refer to the relevant SPS on writing off tax debt for further details on Inland Revenue's practice on providing relief under section 177C of the Tax Administration Act 1994.

Application

  1. This SPS applies to applications for relief by way of instalment arrangement made on or after 15 November 2005. It replaces SPS RDC 610 - Instalment arrangements for payment of tax debt originally published in Tax Information Bulletin Vol 14, No 11 (November 2002).

  2. This SPS also applies to instalment arrangements for student loan repayment debt and late payment penalties incurred on that debt. Interest is not charged on instalment arrangements for student loan repayment debt although it will be charged on student loan balances.

  3. This SPS does not apply to instalment arrangements for payment of child support arrears by non-custodial or custodial parents.

  4. Unless specified otherwise, all legislative references in this SPS refer to the Tax Administration Act 1994.

Summary

  1. Pursuant to section 176, the Commissioner must not recover tax debt from a taxpayer, being a natural person if recovery would place that person in serious hardship.

  2. Section 177 allows a taxpayer to apply for financial relief by requesting to enter into an instalment arrangement.

  3. The Commissioner will negotiate with the taxpayer to determine what method of payment best suits the taxpayer's financial situation and will maximise recovery of the tax debt from the taxpayer.

  4. Applications for relief by way of an instalment arrangement may be made by telephone or in writing.

  5. The Commissioner may require relevant information to be provided in support of the application. This may include financial information and the filing of outstanding returns. This information must be provided within 20 working days or a longer period allowed by the Commissioner.

  6. Upon receipt of a taxpayer's application for an instalment arrangement the Commissioner may accept the request, seek further information from the taxpayer, make a counter offer or decline the request.

  7. The Commissioner's authority to enter into instalment arrangements for the payment of tax debt under the Tax Administration Act 1994 ("the TAA") is further qualified by the requirement:

    • to maximise the recovery of tax debt from a taxpayer, but not if:
      • recovery would represent an inefficient use of the Commissioner's resources, or
      • a taxpayer, being a natural person, would be placed in serious hardship by enforcement of the debt.


    • that, if the Commissioner can recover more through an instalment arrangement than from bankruptcy or liquidation action, the Commissioner is required to enter into an instalment arrangement.

    In Raynel v CIR (2004) 21 NZTC 18,583 Randerson J noted that the obligation to maximise recovery of outstanding debt from a taxpayer is not an absolute obligation. Rather the Commissioner's duty is to be approached on "a pragmatic basis with proper regard to the likely benefits and the costs of achieving them." Randerson J also considered that this obligation does not relieve Inland Revenue officers from their duty under section 6(1) to use their best endeavours to protect the integrity of the tax system. Further, Randerson J noted that the Commissioner is required under section 6A(3)(b) to have regard to the importance of promoting voluntary compliance by all taxpayers with the Inland Revenue Acts. Thus taxpayers are entitled to expect that appropriate and firm action is taken against non-complying taxpayers and that this may override any proposed instalment arrangement.

  8. Use-of-money interest will continue to accrue during the term of an instalment arrangement.

  9. Under section 139B, the initial late payment penalty is divided into two steps with a staggered application.

  10. In addition, monthly incremental penalties will not be charged while a debt is under an instalment arrangement, provided that the taxpayer complies with the instalment arrangement. This applies from the date on which the taxpayer contacts Inland Revenue seeking financial relief.

  11. When the Commissioner accepts an instalment arrangement, he will issue to the taxpayer a letter of confirmation setting out both the taxpayer's and the Commissioner's obligations.

  12. The taxpayer may renegotiate an instalment arrangement at any time. However, the Commissioner may only do so after two years have elapsed from the date the instalment arrangement was entered into.

  13. The Commissioner may cancel an instalment arrangement because the taxpayer has provided misleading information or is not meeting their obligations under the arrangement. In these circumstances monthly incremental penalties will be imposed retrospectively as if the instalment arrangement had not been entered into.

Legislation

  1. The relevant legislative provisions are sections 14B, 139B, 139BA, 176, 177, 177A, 177B and 177CA.

Discussion

  1. Pursuant to section 176, the Commissioner must not recover tax debt from a taxpayer, being a natural person if recovery would place that person in serious hardship.

  2. The taxpayer may apply for financial relief under the TAA. The relief may be in the form of an instalment arrangement and/or a write-off of all or part of the tax debt. (Refer to the relevant SPS for details on Inland Revenue's practice on writing off tax debt.)

  3. Taxpayers may apply for an instalment arrangement by telephone or in writing. In some cases, however, Inland Revenue may require a taxpayer to apply in writing.

  4. Pursuant to section 14B, where a taxpayer is required to apply for financial relief by giving notice in writing to the Commissioner, the taxpayer may do so by:

    • delivering the notice in person to an Inland Revenue office, or
    • issuing the notice by fax to an Inland Revenue office, or
    • sending an email on Inland Revenue's Online Correspondence Service, or
    • sending the notice to an Inland Revenue office by post.

  5. In all cases the taxpayers must provide supporting financial information. This information can be supplied either orally or in writing. Despite this, Inland Revenue officers may obtain written financial information from the taxpayers to verify or further support their applications for financial relief. However, in some cases, Inland Revenue may already hold adequate financial information about the taxpayers and thus further financial information may not be required.

  6. Upon receipt of an application for an instalment arrangement, Inland Revenue may:

    1. Accept the taxpayer's request

      Once the request is accepted written confirmation will be sent to the taxpayer. This will include:

      • the commencement date of the instalment arrangement, and
      • any terms and conditions in addition to the agreed repayments under the instalment arrangement negotiated between Inland Revenue and the taxpayer.

      If the taxpayer disagrees with any of the terms and conditions they should contact the Inland Revenue officer who issued the confirmation immediately.
    2. Seek further information from the taxpayer

      If the Commissioner requires additional information it must be received by a date agreed to between the Commissioner and the taxpayer.

    3. Make a counter offer

      The Commissioner may make a counter offer to the taxpayer where:

      • the Commissioner considers that the taxpayer's financial circumstances disclose that the taxpayer can make instalments at a higher amount than was proposed by the taxpayer in the application, or
      • the Commissioner considers that to accept instalments based on the amount the taxpayer offers to pay would place the taxpayer in serious hardship. In this case the Commissioner may make a counter offer to accept instalments of a lesser amount.

    4. Decline the request

      The Commissioner must not enter into an instalment arrangement:
      • if recovery would represent an inefficient use of the Commissioner's resources, or
      • to the extent that it would place a taxpayer, being a natural person, in serious hardship. However an exception arises where the taxpayer is liable to pay, in relation to a tax debt, a shortfall penalty for either an abusive tax position under section 140D(2) or evasion under section 141E(1) or a similar act. In these circumstances recovery action to collect both the shortfall penalty and the underlying tax will continue even if recovery would place a taxpayer in serious hardship.

      If the Commissioner declines a request for an instalment arrangement the taxpayer will be notified of the reasons for the decision. The taxpayer may request the Commissioner to explain the decision in writing.

      In addition, the Commissioner may decline to enter into an instalment arrangement:

      • if it is considered that the taxpayer is able to pay the debt in full. For example, a taxpayer has term deposits or other investments or the ability to borrow sufficient funds to pay the tax debt, or
      • if the Commissioner considers that more can be recovered by commencing bankruptcy or liquidation proceedings.

Timeframe for responding

  1. If the Commissioner is unable to make a decision on granting relief immediately and requires further information, or makes a counter offer, the taxpayer will be advised in writing.

  2. The letter will contain the following details:

    • the date the application was received
    • the name and contact number of the Inland Revenue officer handling the request
    • the additional information the taxpayer is required to supply (if applicable)
    • the timeframe for the supply of that information
    • the consequences of failing to provide that information by the required date

  3. Generally, the taxpayer must provide the information requested or respond to Inland Revenue's counter offer within 20 working days. However, the Commissioner may allow a longer period to respond if the taxpayer is having difficulties in obtaining the required information or responding to the counter offer within the time frame. In this situation, the taxpayer may contact Inland Revenue to request an extension of the response period. Inland Revenue will consider such a request on its own merits, taking into account the reason for the taxpayer's difficulty in providing the information or responding to the counter offer and whether it is reasonable for the request to be granted.

  4. Incremental late payment penalties and in some cases, part of the initial late payment penalties will not be imposed during the response period. However, use-of-money interest will continue to accrue on a daily basis.

  5. If the information or response to the Commissioner's counter offer is not provided within the negotiated timeframe, late payment penalties will be imposed as though no application had been made.

  6. If the information is forwarded at a later date, the Commissioner will treat this as a new request for financial relief unless there is good reason why the taxpayer was unable to provide the information or respond to the Commissioner's counter offer within the timeframe. Possible reasons could include illness, or involvement in an accident which prevented the taxpayer from contacting Inland Revenue to request an extension.

  7. If the Commissioner, upon receipt of the information requested, declines to enter into an instalment arrangement, any late payment penalties not imposed during the response period will be imposed as though no application for financial relief had been made.

  8. The Commissioner will not commence recovery action during a negotiation period. However, if recovery action has already commenced, the Commissioner will discuss with the taxpayer whether this recovery action will continue during the negotiation period.

  9. For example, a taxpayer may already be paying an outstanding amount by way of an instalment arrangement and may contact the Commissioner to discuss a reduction in the instalment amounts. In this instance, the Commissioner will discuss with the taxpayer whether the current instalment arrangement is to continue until such time as a new instalment arrangement is successfully negotiated.

  10. If the taxpayer incurs further debt during the response period, this amount may be added to the total amount under negotiation.

Considering the request

  1. When considering a request for an instalment arrangement, declining such a request, deciding whether to seek further information, or making a counter offer, Inland Revenue will take into account the following factors:
    1. Whether the proposal will place the taxpayer, being a natural person, in serious hardship.

      1. This requires the Commissioner to take into account the circumstances of the taxpayer, specifically:

        • whether the taxpayer will be unable to meet minimum living expenses according to normal community standards, or
        • the cost of medical treatment for an illness or injury of the taxpayer or the taxpayer's dependant(s), or
        • a serious illness suffered by the taxpayer or the taxpayer's dependant(s) which directly caused financial difficulty in complying with their statutory obligations to file returns and make tax payments (including penalties and/or interest), or
        • the cost of education for the taxpayer's dependant(s). /li>

      2. The Commissioner may take into account whether the recovery of tax debt would place a shareholder who owns, or two shareholders who jointly own, 50% or more of the shares in a company or a shareholder-employee of a close company in serious hardship.

      3. A "close company" for these purposes means a company which has five or fewer natural persons whose voting interests or market value interests in the company exceed 50% and are not a special corporate entity.

      4. Serious hardship does not include financial difficulties that arise because:

        • the taxpayer is obligated to pay tax, or
        • the taxpayer may become bankrupt, or
        • the taxpayer's, or the taxpayer's dependant's social activities and entertainment may be limited, or
        • the taxpayer is unable to afford goods or services that are expensive or of a high quality or standard according to normal community standards.

      5. Whether a person is a taxpayer's "dependant" will be determined on a case by case basis. In determining dependency issues, the Commissioner will consider:

        • whether the person is dependent on the taxpayer for financial support, and
        • what degree of financial support is provided by the taxpayer, and
        • to what extent providing financial support impacts on the taxpayer's ability to meet minimum living expenses according to normal community standards.

        For further discussion on consideration of serious hardship, refer to the separate SPS on Writing off tax debt.
    2. Whether the instalment arrangement would maximise the recovery of tax debt from the taxpayer.
      1. Inland Revenue has a duty to maximise the recovery of tax debt from a taxpayer. The Commissioner is therefore obliged to compare the value of the likely recovery from entering into an instalment arrangement with any other viable options for recovery. In some cases, it is clear which option will maximise recovery. In other cases there may be options that could yield similar returns. Accordingly it is necessary to determine which option will maximise recovery.

      2. Whilst not necessary in most circumstances, one method of distinguishing between alternative repayment options is to apply a net present value calculation.

        A net present value calculation recognises the time value of money, as well as the probability of payment (risk). The proposed payments are discounted for the time value of money and for the likelihood of receiving the money. Inland Revenue needs to determine the amount, date, and probability of each payment and apply an appropriate discount rate. The discount rate is calculated from published Government stock rates. Inland Revenue uses a calculation that multiplies the amount of payment by the probability of payment (for risk), divided by the discount factor appropriate to the term (for interest).

        The methodologies for determining the discount rate, probability of payment and net present value are outlined in the appendix to Tax Information Bulletin Vol 6, No. 14 (June 1995).

      3. The legislation imposes no time limit in which an instalment arrangement must be completed. However, Inland Revenue considers it desirable, in order to maximise the recovery of tax debt, that instalment arrangements are over a shorter period of time, rather than a longer period of time. This is because the longer the period, the greater the risk of non-payment and the greater the loss of the time value of money.

        The Commissioner will also consider whether the proposed instalment arrangement would lead to a monetary return to Inland Revenue greater than any amount likely to be received if legal proceedings were initiated.
    3. Whether the taxpayer is in a position to pay all of the tax debt immediately.

      An opinion will be formed based on the financial information provided by the taxpayer and the result of any further enquiries the Commissioner considers necessary.

    4. Whether the taxpayer has met their obligations under a previous instalment arrangement.

      Where a taxpayer has previously entered into an instalment arrangement with Inland Revenue and has not met their obligations under that instalment arrangement, the Commissioner may decline to enter into a further instalment arrangement.

      In reaching this decision, Inland Revenue will also take into account:

      • the length of time since the previous instalment arrangement
      • whether the previous instalment arrangement was realistic
      • any changes in the taxpayer's position over that time
      • whether there are any other factors likely to indicate that the taxpayer will meet their obligations if an instalment arrangement is agreed to this time.
    5. Whether the taxpayer is being frivolous or vexatious.

      This includes situations where:

      • Inland Revenue considers the taxpayer is not seriously contemplating entering into, and/or complying with an instalment arrangement, or
      • previous requests for instalment arrangements have been declined and the taxpayer provides the same information when requesting a further instalment arrangement.


      In these circumstances Inland Revenue may decline to enter into an instalment arrangement.

    6. Whether the taxpayer's proposal is realistic.

      1. An opinion will be made based upon the financial information provided by the taxpayer and any further information the Commissioner considers necessary. The Commissioner will consider whether the taxpayer can reasonably afford to repay the outstanding amount at the rate detailed in the taxpayer's application.

      2. The Commissioner must, under section 6(1), have regard to protecting the integrity of the tax system and will be conscious of taxpayers re-ordering their tax affairs by reducing personal assets or deliberately concealing assets overseas, or by some other method to prevent recovery of tax debt and to achieve a settlement with the Commissioner.

    7. Whether future compliance by the taxpayer is likely.

      Inland Revenue will consider whether entering into an instalment arrangement would be likely to allow the taxpayer to meet future tax obligations by their due dates. For example, if a taxpayer is continuing in business, whether the instalment arrangement would allow the taxpayer to meet their ongoing provisional, residual income tax and GST obligations as they arise.

    8. Whether the taxpayer has filed all required returns.

      Inland Revenue may, in certain circumstances, request outstanding returns to be filed in order to ascertain the taxpayer's full debt situation. This may occur if the outstanding amount relates to assessments made by the Commissioner in the absence of returns having been filed.

    9. Other relevant factors:

      In Clarke & Money v Commissioner of Inland Revenue (2005) 22 NZTC 19,165 Priestley J considered the following factors relevant to the exercise of the discretion under section 177:

      1. the circumstances which led to the taxpayer's taxation debts
      2. the nature and extent of the taxpayer's co-operation and negotiating stance
      3. the speed with which the taxpayer has provided requested information, and the extent of that information
      4. the taxpayer's degree of compliance in providing information.

        In Raynel v CIR (2004) 21 NZTC 18,583, Randerson J noted that where there has been a flagrant and on-going failure to comply with the taxpayer's obligations and where recovery is dubious or is likely to result only in a relatively minor proportion of the overall debt being recovered, the Commissioner may be justified in initiating or continuing enforcement proceedings to secure the wider interests identified by the legislation.

        In Rogerson v CIR (2005) 22 NZTC 19,260, Potter J also considered the taxpayer's compliance history was a factor relevant to the Commissioner's exercise of the discretion to grant financial relief

Cancellation of an instalment arrangement

 

  1. Under section 177B(6), the Commissioner may cancel an instalment arrangement in the following circumstances:

    • if the instalment arrangement was entered into on the basis of false or misleading information provided by the taxpayer.

      For example, where a taxpayer has overstated outgoings or understated income, it may not have been appropriate for the Commissioner to have entered into an instalment arrangement; or where a taxpayer has a vested right to income or assets of a trust, and this was not disclosed to the Commissioner.

    • if the repayment obligations under the instalment arrangement are not being met.

  2. If an instalment arrangement is cancelled because misleading information was provided, any late payment penalties not imposed under the instalment arrangement from the date the taxpayer contacted Inland Revenue seeking financial relief will be reinstated in full.

  3. When an instalment arrangement is cancelled due to the repayment obligations not being met, incremental late payment penalties will be imposed on a monthly basis from the date the taxpayer stops meeting the repayment obligations. Any late payment penalties not charged under the instalment arrangement from the date the taxpayer contacted Inland Revenue seeking financial relief to the date Inland Revenue cancels the instalment arrangement are not reinstated.

Payments

  1. Inland Revenue will negotiate with the taxpayer to achieve the frequency and method of payment that matches the taxpayer's financial circumstances and which maximises recovery of the tax debt from the taxpayer.

  2. Inland Revenue will only apply credits that arise in a taxpayer's account to the outstanding arrears that are under an instalment arrangement when requested by the taxpayer.

  3. A taxpayer may start making voluntary payments at any time, without contacting the Commissioner to request an instalment arrangement. However, in these situations the taxpayer will not be eligible for any late payment penalty reduction or non-imposition. If the taxpayer does subsequently contact Inland Revenue to request an instalment arrangement, after commencing the voluntary payments, and that request is granted, the non-imposition of penalties will apply from the date the taxpayer contacted Inland Revenue requesting financial relief.

Reviewing instalment arrangements

  1. A taxpayer may renegotiate an instalment arrangement at any time.

  2. The Commissioner may only initiate renegotiation of an instalment arrangement after the end of two years from the date on which the instalment arrangement was entered into. Such a review will consider whether the instalment arrangement is still appropriate to the taxpayer's financial circumstances and may therefore require updated financial information from the taxpayer.

  3. The date the instalment arrangement is entered into is the date the instalment arrangement is accepted by the Commissioner. The taxpayer will be notified of the Commissioner's acceptance of the instalment arrangement in writing.

Imposition of late payment penalty

  1. Late payment penalties imposed under section 139B comprise an initial late payment penalty and incremental late payment penalties.

  2. The initial late payment penalty is a two-step penalty being:

    • an initial late payment penalty of 1% imposed on the day after due date, and
    • a second initial late payment penalty of 4% imposed at the end of the 6 th day after the date on which the 1% initial late payment penalty is imposed if the tax owing remains outstanding. In practice, if the tax owing remains outstanding, this means the 4% second initial late payment penalty is imposed at the end of the 7 th day after the due date.

  3. An incremental late payment penalty of 1% is imposed on the balance of tax debt outstanding at the end of every month after the date the initial 1% late payment penalty was imposed.

  4. The Commissioner will review monthly all instalment arrangements entered into to determine whether the expected instalment amount has been received for the previous month. Where the instalment has been received, the incremental late payment penalty will not be imposed for that month.

  5. The agreed instalment arrangement amount is the minimum amount that is due each month. Extra payments in one month are not used as credits towards future monthly obligations. Instead they are applied to reduce the term of the instalment arrangement and the amount of interest payable.

Instalment arrangements entered into before the due date - commonly known as "Pre-emptive instalment arrangements"

  1. Where the taxpayer contacts the Commissioner seeking financial relief by way of an instalment arrangement before the due date, the 1% initial late payment penalty under section 139B(2A)(a) will be imposed. However, the 4% initial late payment penalty under section 139B(2A)(b) will not be imposed. This type of arrangement is commonly known as a "pre-emptive" instalment arrangement.

  2. In addition, where monthly repayment obligations under the instalment arrangement have been met, the monthly incremental late payment penalty of 1% will not be imposed for that month. Failing to meet any monthly repayment obligations will result in the incremental late payment penalty being imposed for that month based on the balance outstanding under that instalment arrangement.

  3. If financial relief is not granted, the late payment penalties mentioned earlier will be imposed as if the taxpayer had not requested financial relief.

  4. When a taxpayer seeks to enter into a pre-emptive instalment arrangement for provisional tax payments they must provide cashflow forecasts and budgets to substantiate the proposed instalment arrangement when required. The Commissioner may consider the taxpayer's trend of making tax payments, taxable income and the industry in which they are working. The Commissioner may also refer to other taxpayers in the same industry to establish whether the taxpayer will have residual income tax to pay.

  5. When a taxpayer seeks to enter into a pre-emptive instalment arrangement for the payment of provisional tax instalments based on the standard method but there is evidence, such as a cashflow forecast or budget, to establish that the taxpayer will have no tax to pay in the tax year, the Commissioner may decline to enter into an instalment arrangement with the taxpayer.

Instalment arrangements entered into on or after due date

  1. Where the taxpayer contacts the Commissioner seeking financial relief on or after the due date, both the 1% and 4% initial late payment penalties will be imposed. In addition, any incremental late payment penalties imposed up to the date the taxpayer requests financial relief are also payable.

  2. The monthly incremental late payment penalty of 1% will not be charged in those months where the monthly repayment obligations are met. Failing to meet monthly repayment obligations will result in an incremental penalty being imposed for that month based on the balance outstanding under that instalment arrangement.

  3. If all obligations under the instalment arrangement are fulfilled, these instalment arrangements will, in effect, be charged only the 1% and 4% initial late payment penalties plus any monthly incremental penalties imposed prior to the taxpayer requesting financial relief.

Standard Practice

  1. Upon receipt of a taxpayer's application for an instalment arrangement, Inland Revenue has four options:

    1. accept the taxpayer's request, or
    2. seek further information from the taxpayer, or
    3. make a counter offer, or
    4. decline the request.

  2. Inland Revenue will take into account the following factors when considering a taxpayer's application for an instalment arrangement:

    1. Whether the proposal will place the taxpayer, being a natural person, in serious hardship.
    2. Whether the instalment arrangement would maximise the recovery of outstanding tax from the taxpayer.
    3. Whether the taxpayer is in a position to pay all of the tax debt immediately.
    4. Whether the taxpayer has met their obligations under a previous instalment arrangement.
    5. Whether the taxpayer is being frivolous or vexatious.
    6. Whether the taxpayer's proposal is realistic.
    7. Whether future compliance by the taxpayer is likely.
    8. Whether the taxpayer has filed all required returns.
    9. Whether other relevant factors exist.

  3. When considering a taxpayer's application, the Commissioner may require the taxpayer to provide additional information within 20 working days or a longer period allowed by the Commissioner.

  4. The taxpayer must provide the required information within the timeframe. Failure to do so will be treated as if the application for an instalment arrangement had not been made. This means that the initial late payment penalty, the monthly incremental late payment penalty and use-of-money interest will be imposed on the unpaid tax.

  5. When the Commissioner accepts an instalment arrangement, a letter of confirmation setting out both the taxpayer's and the Commissioner's obligations will be issued to the taxpayer.

  6. Where the taxpayer applies for an instalment arrangement before the due date and the Commissioner accepts the application, the initial late payment penalty of 1% on the unpaid tax will be imposed. Use-of-money interest will also be accrued daily on the unpaid tax.

  7. Where the taxpayer applies for an instalment arrangement after the due date and the Commissioner accepts the application, the initial late payment penalty of 1% and 4% on the unpaid tax will be imposed. In addition, any incremental late payment penalties imposed up to the date the taxpayer requests financial relief are also payable. Use-of-money interest will also be accrued daily on the unpaid tax.

  8. The taxpayer may renegotiate an instalment arrangement at any time. The Commissioner may do so only after the end of two years from the date on which the instalment arrangement was entered into. During the renegotiation process, the Commissioner may require the taxpayer to provide further information (including financial information).

  9. The Commissioner may cancel an instalment arrangement because the taxpayer has provided misleading information. In this case, the monthly incremental penalty of 1% will be imposed on the unpaid tax from the date on which the taxpayer contacted Inland Revenue seeking financial relief.

  10. However, when an instalment arrangement is cancelled because the taxpayer does not meet their repayment obligations, a monthly incremental penalty of 1% will be imposed on the unpaid tax from the date on which the taxpayer fails to meet their repayment obligations under the instalment arrangement.

This Standard Practice Statement is signed on 15 November 2005.


 

Graham Tubb
National Manager, Technical Standards