Where taxpayers fail to pay their taxes or file returns by stipulated due dates, penalties and interest are charged in accordance with the law. The penalty and interest are tax that are payable. However, they may apply to the Commissioner to remit such penalties and interest.

This provision covers only penalty and interest. The principal tax has to be settled in full.

This application by a taxpayer for consideration for penalties and interest to be vacated is what is known as a waiver application. The Commissioner may remit the penalty and interest in whole or partially, depending on justification and evidence presented.

 Penalty and interest charged under fraud or tax evasion are excluded from consideration for waiver.