Where—

is not paid on or before the last date allowed for payment, a penalty of 10% of the amount unpaid is added to that amount, and the penalty compounds at the rate of 10% at 6-monthly intervals and is recoverable as if it were part of the premium.

The Corporation may remit all or part of any penalty imposed under section 115(14) or section 118 if, in the special circumstances of any case, the Corporation considers it fair and reasonable to do so, and, if the amount so remitted has been paid, the Corporation may, in its discretion, either refund the amount paid or credit any amount so paid on account against the amount of any premium that may for the time being be due and payable by the person by whom such payment was made.

Every person who is or will be liable to pay—

who evades, attempts to evade, or does or omits to do anything with the intent to evade, the determination or payment of the whole or part of any of the premium which is or may become payable by the person under this Act (hereinafter referred to as the ‘deficient premium’) is chargeable, by way of a penalty, in addition to any other penalty for which the person may be liable, with an additional amount (in this section referred to as the ‘penal premium’) not exceeding an amount equal to treble the amount of the deficient premium; and sections 186 to 193 of the Tax Administration Act 1994 apply as if the penal premium were an amount of penal tax in respect of which the Commissioner of Inland Revenue had made an assessment under section 188 of the Tax Administration Act 1994.”