CH154100 - Penalties for Failure to Pay on Time: Rules for specific taxes: Registered Pension Scheme (RPS): Penalties: Failure to pay all or part of amounts due - overview
If a person fails to make a full payment of income tax under the Registered Pension Scheme (RPS) by the penalty date, they become liable to a penalty on the amount unpaid.
The penalties for failing to pay income tax under the RPS in full and on time are
- an initial penalty of 5% for tax unpaid at the penalty date, see CH154120, and
- two further penalties of 5% each for tax unpaid at 5 and 11 months after the penalty date, see CH154140.
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 due date - the date when the person needs to pay the tax, and
- the penalty date - which is 31 days after the due date and the first date on which a penalty is chargeable for a tax period.
There are special rules for the penalty dates relating to assessments in absence of a return, corrections and amendments, see CH154200.