Calculate Late Penalty and Interest
The Revenue Act includes provisions for charging penalty and interest if a taxpayer fails to pay a tax within the time specified.
Interest is calculated by multiplying the unpaid tax owed by the current interest rate.
Penalty is 5% of the total unpaid tax due for the first two months. After two months, 5% of the unpaid tax amount is assessed each month. The maximum late penalty is equal to 25% of the unpaid tax owed.