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IRD cuts underpaid and overpaid tax rates; You'll now be charged only 8.4% instead of 8.89% for any underpaid tax

IRD cuts underpaid and overpaid tax rates; You'll now be charged only 8.4% instead of 8.89% for any underpaid tax

Use-of-money interest rates on underpaid and overpaid tax have been changed in line with market rates on which they are based, Revenue Minister Peter Dunne announced today.

"The rate charged by Inland Revenue on underpaid tax will fall from 8.89% to 8.40%, and the rate for overpaid tax will fall from 2.18% to 1.75%, from 8 May 2012," Dunne said.

Use-of-money interest rates are reviewed regularly to reflect current market interest rates. 

The new rates were approved by Order in Council on Monday 26 March.

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