Penalties - VAT, excise and landfill tax wrongdoing - types of wrongdoing

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Penalties - VAT, excise and landfill tax wrongdoing - types of wrongdoing
  • Three types of wrongdoing
  • Onus of proof
  • Level of proof

This guidance note provides an overview of the types of wrongdoing that would be liable to a penalty. This note should be read in conjunction with the Overview of the three penalties introduced from 1 April 2010, Penalties - VAT, excise and landfill tax wrongdoing and Penalties - VAT, excise and landfill tax wrongdoing - calculating, assessing and collecting the penalty guidance notes.

Three types of wrongdoing

Currently, there are three types of wrongdoing that are liable to a penalty:

CH93050; FA 2008, Sch 41, para 5
  • non-deliberate
  • deliberate but not concealed – where the failure is deliberate but no arrangements were made to conceal it
  • deliberate and concealed – where the failure is deliberate and arrangements were made to conceal it

Any penalties levied by HMRC in respect of VAT and excise wrongdoing are intended to correct the behaviour that led to the wrongdoing. However, it should be noted that not every wrongdoing will result in the imposition of a penalty. If the person has a reasonable excuse for a non-deliberate wrongdoing, then they will not be liable to a penalty. However, the level of penalty imposed for deliberate wrongdoing will be higher than those which are levied in respect of a non-deliberate wrongdoing. The highest penalty will be imposed in situations where the

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