Aileen Barry on the tax issues in 2010 that affected tax investigations
The five key changes in 2010 affecting investigations are as follows:
1. The new penalty regime
The new penalty regime became effective from 1 April 2009 so we are and will be for some years concluding settlements of investigations under both the new and old regimes. How penalties are to be determined is set out quite clearly in FA 2007 s 97 and Sch 24. Overall higher penalties appear to be exigible but HMRC now has discretion to suspend penalties as a counterbalance. Broadly the new regime is as follows:
Subject to mitigation for the quality of disclosure whether ‘prompted’ and the ‘extent’ of the disclosure;
The mistake was a careless inaccuracy = 30% penalty;
The mistake was deliberate but not concealed = 70% penalty;
The mistake was both deliberate and concealed;
...
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Aileen Barry on the tax issues in 2010 that affected tax investigations
The five key changes in 2010 affecting investigations are as follows:
1. The new penalty regime
The new penalty regime became effective from 1 April 2009 so we are and will be for some years concluding settlements of investigations under both the new and old regimes. How penalties are to be determined is set out quite clearly in FA 2007 s 97 and Sch 24. Overall higher penalties appear to be exigible but HMRC now has discretion to suspend penalties as a counterbalance. Broadly the new regime is as follows:
Subject to mitigation for the quality of disclosure whether ‘prompted’ and the ‘extent’ of the disclosure;
The mistake was a careless inaccuracy = 30% penalty;
The mistake was deliberate but not concealed = 70% penalty;
The mistake was both deliberate and concealed;
...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
