Common use of Civil Penalty and Interest Provisions Clause in Contracts

Civil Penalty and Interest Provisions. When a licensee fails to file a return, files a late tax return, or fails to remit any tax due, the licensee is subject to penalty and interest. The penalty for failure to pay tax when due is 10% of the net tax due to all member jurisdictions. The penalty for failure to file the return when due is $50.00. Interest is computed on the tax due at the applicable IFTA rate. Interest rate information is available online at xxxxx://xxx.xxxxx.xxx/taxes-forms/ifta- annual-interest-rates. (R1220; N.C.G.S. 105-449.45(d) and (e)) The licensee may also be subject to additional penalties for negligently failing to pay tax due, fraudulently evading tax due, or underestimating the liability of tax due by twenty-five percent (25%) or more. (R1220.300; N.C.G.S. 105-236)

Civil Penalty and Interest Provisions. When a licensee fails to file a return, files a late tax return, or fails to remit any tax due, the licensee is subject to penalty and interest. The penalty for failure to pay tax when due is 105% of the net tax due to all member jurisdictions. The penalty for failure to file the return when due is $50.00. Interest is computed on the tax due at the applicable IFTA rate. Interest rate information is available online at xxxxx://xxx.xxxxx.xxx/taxes-forms/ifta- annual-interest-rates. (R1220; N.C.G.S. 105-449.45(d) and (e)) The licensee may also be subject to additional penalties for negligently failing to pay tax due, fraudulently evading tax due, or underestimating the liability of tax due by twenty-five percent (25%) or more. (R1220.300; N.C.G.S. 105-236)