CH155310 - Penalties for Failure to Pay on Time: Rules for specific taxes: Machine Games Duty (MGD): Overview
»Ê¹ÚÌåÓýapp penalty rules for failure to pay Machine Games Duty (MGD) in full and on time start for payments due on or after 1 February 2013.
To decide whether a person is liable to a penalty you need to know the due date and the penalty date.
»Ê¹ÚÌåÓýapp due date for an amount of MGD is 30 days after the end of the accounting period. If the 30t h day after the end of the accounting period is not a business day, then the due date becomes the last business day before that day.
»Ê¹ÚÌåÓýapp penalty date is the day after the due date.
A person can be liable to
- A default penalty if an amount of MGD is unpaid at the penalty date, and
- two further penalties if an amount of MGD remains unpaid 6 and 12 months after the penalty date.
Penalties are charged in relation to a due date for an accounting period. »Ê¹ÚÌåÓýapp first failure to pay MGD by the due date counts as a failure and starts the penalty period, but does not attract a default penalty. A penalty period starts on the penalty date and ends 12 months after the due date of the accounting period in which the first default was incurred. A penalty period is extended if there are further failures to pay MGD by the due date. »Ê¹ÚÌåÓýapp penalty period ends 12 months after the due date for the person’s most recent failure.
»Ê¹ÚÌåÓýapp penalty regime is progressive, which means that continuing failures within a penalty period can give rise to an increased rate of default penalty.