The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of how HMRC will calculate the amount of penalty due if a person becomes liable to one because they have committed a wrongdoing. 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- types of wrongdoing guidance notes.
Before HMRC can commence with calculating the amount of penalty that will be imposed on the business, it must take the following steps:
HMRC will use the following as the basis for calculating the PLR:
This amount tax or duty is the PLR for the purposes of calculating the amount of penalty due and the penalty will be calculated by applying an appropriate percentage to the PLR. Where the wrongdoing is the supply of a product knowing that it will be misused the maximum penalty percentage is 100% of the PLR. For all wrongdoing
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