40Penalty for unpaid GST

##### 40 Penalty for unpaid GST (1) If a net amount or an amount of GST that is payable by you remains unpaid after the day by which it must be paid, you are liable to a penalty at the rate of 16% per year on the unpaid amount. (2) The penalty is calculated from: (a) the day on which the amount becomes due to be paid, ignoring any extension of time to pay the amount given by the Commissioner under section 33‑20 of the GST Act; or (b) a later day determined by the Commissioner if the Commissioner has extended the time to pay the amount, or permitted it to be paid by instalments, under that section. (3) The fact that a judgment is entered or given in a court for the payment of a net amount or amount of GST, or of a composite amount that includes a net amount or an amount of GST, does not of itself cause the net amount or amount of GST to stop being unpaid for the purposes of this section. (4) If the judgment debt bears interest, the penalty payable under this section is reduced (but not beyond nil) by the following amount:  where: > net amount or GST component means the net amount, or GST, component of the judgment debt.