Penalties and interest for employer health tax

If you don't file your employer health tax return and pay the tax by the filing due date, you will be charged penalties and interest.

If you’re required to make instalment payments, you’ll need to pay by the instalment payment due dates. If you miss any of these payment dates or have deficient payments, you will be charged interest.

Penalties

Late filing penalties are assessed if you did not file your return and pay your tax by the filing due date. The penalty is calculated as:

Penalty = (5% x A) + (1% x A x B)

A = the balance owing for the calendar year on the filing due date

B = the number of months, up to a maximum of 12 complete months, from the filing due date to the earlier of:

  • The date you filed the return, and
  • The date you were assessed a penalty

Late filing penalties for repeated failure to file are assessed if you did not file your return and pay your tax by the filing due date, and you:

  • Subsequently did not file your return within the time required after being issued a written demand, and
  • Have been assessed late filing penalties in any of the 3 previous calendar years

In this case, the penalty is calculated as:

Penalty = (10% x A) + (2% x A x C)

A = the balance owing for the calendar year on the filing due date

C = the number of months, up to a maximum of 20 complete months, from the filing due date to the earlier of:

  • The date you filed the return, and
  • The date you were assessed a late filing penalty for repeated failure to file

Interest

Interest is assessed at a rate of prime plus 3 percent for: