Speed Read: There is a new regime imposing penalties for errors in returns and similar documents. This has been fully in force since 1 April 2009 in relation to income tax capital gains tax corporation tax construction industry deductions and VAT and is extended to the remaining HMRC-administered taxes with effect from 1 April 2010. Penalties are imposed for: mistakes after reasonable care (0% penalty); failure to take reasonable care (0–30% penalty); deliberate understatement (20–70% penalty); and deliberate understatement with concealment (30–100% penalty).
Overview of the new system
One of the earliest products of HMRC's Review of Powers Deterrents and Safeguards was an entirely new behaviour-based system of penalties...
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Speed Read: There is a new regime imposing penalties for errors in returns and similar documents. This has been fully in force since 1 April 2009 in relation to income tax capital gains tax corporation tax construction industry deductions and VAT and is extended to the remaining HMRC-administered taxes with effect from 1 April 2010. Penalties are imposed for: mistakes after reasonable care (0% penalty); failure to take reasonable care (0–30% penalty); deliberate understatement (20–70% penalty); and deliberate understatement with concealment (30–100% penalty).
Overview of the new system
One of the earliest products of HMRC's Review of Powers Deterrents and Safeguards was an entirely new behaviour-based system of penalties...
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:
