If you do not make deductions

Official source

We’re here to help you to meet your responsibilities, but we will take enforcement action if you do not comply with the tax laws. Not paying the deductions to us is a serious offence and you could be prosecuted.

If you do not make the required deductions, you could be charged a shortfall penalty of up to 150% of the PAYE employer deductions. If you deliberately do not make deductions, in addition to the penalties, you could be fined up to $50,000, imprisoned for up to 5 years, or both. Company directors and officers can also be fined and prosecuted.

More information is on pages 75 and 76 of the Employer's guide - IR335.

Employer's guide - IR335

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If you do not make deductions

Official source

We’re here to help you to meet your responsibilities, but we will take enforcement action if you do not comply with the tax laws. Not paying the deductions to us is a serious offence and you could be prosecuted.

If you do not make the required deductions, you could be charged a shortfall penalty of up to 150% of the PAYE employer deductions. If you deliberately do not make deductions, in addition to the penalties, you could be fined up to $50,000, imprisoned for up to 5 years, or both. Company directors and officers can also be fined and prosecuted.

More information is on pages 75 and 76 of the Employer's guide - IR335.

Employer's guide - IR335