Henry VIII reborn

KEY POINTS

• The Government has gone from a gradualist approach to penalties to a big bang approach
• The Treasury's powers are too extensive
• Delaying the new regime would not be helpful

Recalling the fuss over 'HMRC think' which was subsequently dropped from FA 2007 Sch 24 David Gauke proposed amendments to clause 117 'Penalties for errors' in this year's Finance Bill. The amendments would in effect hold back its introduction for a year. 

He said that there were two logical approaches which could be taken on the matter.

First it is 'confusing' to have two different penalty regimes for errors in tax returns and so it would seem sensible to move to a single structure as soon as possible. He described this as a 'big bang approach' to penalties.

The alternative would be to take a slower approach ...