Revenue Administration in Sub-Saharan Africa - International Tax ...

CountryTable 29: Interest and administrative penalties on late payment of taxInterest chargesFailure to pay tax on timePIT CIT VATAdministrativeAdministrativeAdministrativeInterest chargesInterest chargespenaltiespenaltiespenaltiesBenin n.a. n.a. n.a. n.a. n.a. n.a.Botswana 1.5% n.a. 1.5% n.a.BurundiEthiopiaGhana2% per month onany amounts notfully paid untilsettledAdding 25% overand above thehighestcommerciallending interestrate of banks.n.a.n.a.Birr1,000 for the first30 days or part thereofthe declaration remainunfilled and Birr 2,000for the next 30 daysand Birr 1,500 for each30 days there after thedeclaration remainunfilled.10% of the taxpayable if the failure isfor a period of notmore than 3 monthsor 20% if the failure isfor a period exceeding3 months. If after anotice has beenissued, payment is notmade, an additional5% penalty is leviedfor every monthduring which thedefault continues.2% per month onany amounts notfully paid untilsettledAdding 25% over andabove the highestcommercial lendinginterest rate ofbanksn.a.n.a.Birr1,000 for the first30 days or partthereof thedeclaration remainunfilled and Birr2,000 for the next 30days and Birr 1,500for each 30 daysthere after thedeclaration remainunfilled.10% of the taxpayable if the failureis for a period of notmore than 3 monthsor 20% if the failureis for a periodexceeding 3 months.If after a notice hasbeen issued,payment is notmade, an additional5% penalty is leviedfor every monthduring which thedefault continues.2% of outstandingamount per month1% per monthAdding 25% over andabove the highestcommercial lendinginterest rate of banksBank of Ghanadiscount rate plusone-quarter of thatraten.a.10% after firstreminder notice plus25% after secondreminder notice5% of the amount oftax underpayment foreach month which thefailure continues up to25% such amount butnever exceeds Birr50,000. In any eventthe penalty may notbe less than thesmaller of : (a) Birr10,000; and (b)100% ofthe amount of taxrequired to be shownon the returnn.a.88