New Zealand Approves Increase in Use-of-Money Interest Rate

According to an announcement by New Zealand Inland Revenue, an increase in the use-of-money interest rate was approved by Order in Council on 30 March 2015. The interest rate charged by Inland Revenue on underpaid tax will rise from 8.40% to 9.21%, and the rate for overpaid tax will rise from 1.75% to 2.63%. The rate for underpaid tax is in addition to the standard penalty of 1% of the amount outstanding, plus 4% if not paid within 7 days and 1% per month.

The new rates will apply from 8 May…