Use-of-money interest rates to rise
Use-of-money interest rates on unpaid and overpaid tax will rise from 8 March 2007, to align them with market rates, Revenue Minister Peter Dunne announced today.
The rate charged by Inland Revenue on unpaid tax will rise from 13.08% to 14.24%, while the rate paid by Inland Revenue on overpaid tax will rise from 5.71% to 6.66%.
"Use-of-money interest rates are reviewed regularly to ensure they are aligned with market interest rates," Mr Dunne said.
"The rates are calculated according to formulas based on the Reserve Bank survey of interest rates. The current rates were set with effect from 8 March 2005, so are now out of alignment with market rates," he said.
The changes were approved by Order in Council today.
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