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You can ask us to waive a payment penalty for late filing, non-electronic filing or late payment. If we do this, it means the penalty is legally waived and you do not have to pay the penalty.

We can waive penalties in the following circumstances:

Reasonable cause

We may waive a penalty if the reason you were not able to file or pay on time was beyond your control - it must be 'reasonable' for an average person in the same position not to have filed or paid on time. We must apply the term reasonable to the event or circumstance.

Collecting the highest net revenue

Our legal duty is to collect, over time, as much revenue as possible, ideally through voluntary compliance with the tax laws by all taxpayers. Sometimes this legal duty means we’ll be able to waive penalties, for example, where we charge a penalty because of:

  • a genuine error
  • a ‘one-off’ situation
  • incorrect advice from us that directly resulted in the non-compliance.