.png)
.png)
Issue:
4176
/
Categories:
Comment & Analysis
, Compliance Handbook
, penalties
, Tax investigations
, VAT
MIKE TRUMAN has been examining the Compliance Handbook provisions on the new penalty regime, and thinks some taxpayers are going to get their fingers burnt
KEY POINTS
- New penalties apply from April 2009 and new guidance is available.
- Guidance suggests large errors cannot be careless.
- Some common errors will be harshly treated.
- Careless and deliberate VAT errors need to be disclosed even if corrected.
The level of penalties for errors on tax returns is currently a matter that is very open to negotiation because statute law defines the maximum penalty but does not define the minimum.
It's probably true to say that penalties tend to cluster around the 20% to 50% level but good negotiating skills and experience in the field can be very effective. For returns submitted after 5 April 2009 the penalty regime is completely different and it remains to be seen how effective negotiation will be.
And although that starting date is still some months...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
