Example 1: GST Liability less than Estimated GST
Business A did not submit the GST F5/F8 Return and
payment for the accounting period ending 30 Sep 2019 before the due date 31 Oct 2019.
Assuming
that the estimated GST payable was $3,000, a late payment penalty of $150 (i.e.
5% x $3,000) would be imposed.
On 10 Nov
2019, Business A declared its actual GST liability of $1,300. The GST and
the late payment penalty were revised to $1,300 and $65 (5% penalty on $1,300)
respectively.
Accounting
Period Ending: 30 September 2019
Due Date: 31
Oct 2019
Date of NOA/ F5 Received | Tax Amount | Penalty Imposed |
---|
5 Nov 2019 | $3,000 | $150 |
10 Nov 2019 | ($1,700) | ($85) |
Revised GST and 5% Penalty | $1,300 | $65 |
Example 2: GST Liability more than Estimated GST
Business
B did not submit the GST F5/F8 Return and payment for the accounting
period ending 30 Sep 2019 before the due date 31 Oct 2019.
Assuming
that the estimated GST amount payable was $3,000, a late payment penalty of
$150 (i.e. 5% x $3,000) would be imposed.
On 10 Nov
2019, Business B declared its actual GST liability of $5,000. The GST and
the late payment penalty were revised to $5,000 and $250 (5% penalty on $5,000)
respectively.
Accounting
Period Ending: 30 Sep 2019
Due Date: 31
Oct 2019
Date of NOA / F5 received | Tax Amount | Penalty Imposed |
---|
5 Nov 2019 |
$3,000
|
$150
|
10 Nov 2019 |
$2,000
|
$100
|
Revised GST and 5% penalty
|
$5,000
|
$250
|
Example 3: GST Liability is $0
Business C
did not submit the GST F5/F8 Return and payment for the accounting period
ending 30 Sep 2019 before the due date 31 Oct 2019.
Assuming
that the estimated GST amount was $3,000, a late payment penalty of $150 (i.e.
5% x $3,000) would be imposed.
On 10 Nov
2019, Business C declared its actual GST liability of $0. Both the GST and the
late payment penalty were revised to $0.
Accounting
Period Ending: 30 Sep 2019
Due Date: 31
Oct 2019
Date of NOA / F5 received | Tax Amount | Penalty Imposed |
---|
5 Nov 2019 |
$3,000
|
$150
|
10 Nov 2019 |
($3,000)
|
($150)
|
Revised GST and 5% penalty
|
$0
|
$0
|
Example 4: 2% additional penalty
Business E filed a GST F5 Return for the
period ending 30 Jun 2019 on 31 Jul 2019 but did not pay the GST liability of
$10,000 declared. A late payment penalty notice was
issued on 5 Aug 2019 and Business E eventually paid the GST and late penalties
on 15 Dec 2019.
The payment was overdue by more than four
completed months i.e. Aug, Sep, Oct and Nov 2019. The total penalty imposed was
$1,300 (i.e. 5% penalty x $10,000 plus additional 2% penalties x $10,000 x 4
months).
Accounting Period Ending | Filing and Payment Due Date | Date of NOA/ F5 Received | 5% Penalty Imposed | 2% Additional Penalty Imposed |
---|
30 Jun 2019 | 31 Jul 2019 | 15 Dec 2019 | $500 ($10,000 x 5%) | $800 ($10,000 x 2% x 4 months) |