Commentary

V7.292 How penalties are calculated

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.292 How penalties are calculated

Part V7 Tax planning | Commentary

V7.292 How penalties are calculated

Finance Act 2007, Sch 24 introduced a penalty regime that applies to VAT returns filed after 31 March 2009. The aim of the regime is to encourage compliance and not to penalise innocent errors. The three categories of behaviour that give rise to penalties are listed in FA 2007, Sch 24, para 3 and can be summarised as:

  1.  

    •     Careless – where the inaccuracy is due to a failure to take reasonable care.

  2.  

    •     Deliberate but not concealed – where the inaccuracy is deliberate but arrangements are not made to conceal it.

  3.  

    •     Deliberate

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