Use of Money Rate Lowered
November 25, 2010 New Zealand Taxation
The rate at which the Inland Revenue Department charges tax mis-payments is set to change, with the underpayment rate decreasing and the overpayment rate increasing.
On November 23rd the New Zealand Revenue Minister Peter Dunne announced that the use-of-money rate that is charged by the Inland Revenue Department for over-paid and under-paid taxes will soon be altered. As of January 16th 2011 the use-of-money rate on unpaid taxes will be 8.89 percent, and the rate on overpayments will be 2.18 percent. The rates will rise from the current 8.91 percent on underpayments, and 1.82 percent on overpayments.
The use-of-money rates are reviewed regularly by the Inland Revenue Department and altered to reflect contemporary market interest rates. The rates are generally derived from figures derived from surveys held by the New Zealand Reserve Bank. The latest rate decision was approved by Order in Council on November 22nd.
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