If you did not pay or paid late
Death prior to 1 Jan 05
For death occurring prior to 1 Jan 05, only interest on Estate Duty will apply.
Death on or after 1 Jan 05 up to 14 Feb 08
Penalties will only apply for death occurring on or after 1 Jan 05 to 14 Feb 08.
The executor, the administrator, or the accountable person is given 30 days from the date of the Notice of Assessment (NOA) to pay the tax. When no payment is received, a 6% penalty and subsequently a 1% additional penalty shall be imposed on the outstanding tax.
6% penalty per year
A penalty of 6% per year shall be imposed on the unpaid estate duty and/or interest for the first complete month if the unpaid estate duty and/or interest is not paid by the Relevant Date.
(Relevant Date means 30 days from the date of Notice of Assessment (NOA) or 6 months from the date of death of the deceased, whichever is the later.)
1% additional penalty per year
If the unpaid duty and/or interest remain outstanding after 30 days from the date of NOA or for more than 6 months from the date of death of the deceased, whichever is the later, a penalty of 6% per year shall be imposed. An additional penalty of 1% per year for each completed month on an incremental basis, subject to a maximum of 12% per year shall be imposed.
Late Payment Penalty
| Period |
Date of Death |
| On or prior to 31 Dec 04 |
On or after 1 Jan 05 to 14 Feb 08 |
| 30 days after the date of NOA or 6 months after the date of death of deceased whichever is the later |
0% |
6% |
| One month after the imposition of the 6% penalty per year |
0% |
7% |
| For each completed month that duty/interest remains unpaid |
0% |
8%
Incremental of 1% up to maximum of 12% per year |
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Basis of imposition of late payment penalties
Imposition of the late payment penalty depends on when the NOA is received.
When NOA is received within 6 months from the date of death of the deceased
When NOA is received after 6 months from the date of death of the deceased
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Demand Note's due date is over - What will happen
We may, without prior notice, recover the outstanding duty by taking legal action.
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