Penalties for failure to pay on time: rules for specific taxes: Diverted Profits Tax (DPT): penalties - failure to pay all or part of amounts due - overview
If a person fails to make a full payment of DPT by the payment date, they become liable to a penalty on the amount unpaid.
The penalties for failing to pay DPT in full and on time are
- an initial penalty of 5% for tax unpaid at the penalty date, see CH155489,
- a penalty of 5% for tax unpaid at 5 months after the penalty date, see CH155492, and
- a penalty of 5% for tax unpaid at 11 months after the penalty date, see CH155492.
So a failure to pay that continues for 11 months after the penalty date can incur all of these penalties on the same unpaid tax.
It is important to distinguish between
- the payment date for payment - the date when the business needs to pay the charge notice, and
- the penalty date - which is the first date on which a penalty is chargeable.