What is the final penalty if the payment is over 12 months late?

When a tax payment is over 12 months late, a final penalty is typically applied to encourage timely payments and to discourage delays. In this case, an additional 5% penalty is imposed on the outstanding amount due. This reflects the seriousness of failing to meet tax obligations within the required timeframe and serves as a warning to taxpayers to comply with tax regulations.

The 5% additional penalty is specifically designed to apply on amounts still outstanding after the initial penalty measures may have been invoked. This cumulative approach signifies the compounded consequences of late payments, emphasizing that taxpayers should make every effort to fulfill their obligations promptly.

It's important to recognize that this structure is aligned with common practices observed in tax administration, where there are gradual increases in penalties based on the length of delayed payments. This creates a clear framework for taxpayers to understand the repercussions of non-compliance over time.