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14.5. Interest and Penalties

Failure to self-assess tax, understatement of tax liability or late tax payment is subject to the following penalties:

  • 20% of the tax due where an adjustment is made prior to receiving notification from the tax authority (40% for subsequent offenses);
  • 50% of the tax due where an assessment is issued (100% for subsequent offenses); and
  • 2% late payment interest per month or part of the month, capped at 50% of the principal tax amount due.

Tax is fixed automatically if a tax return is not filed.