September 17, 2007

Changes to Tax Penalties

A new penalty regime enacted by the Finance Act 2007 will come into force for Returns covering periods on or after 1 April 2008 and filed after 1 April 2009. The new regime applies to ALL taxes.

Particularly of note from a VAT perspective are the facts that higher penalties will be imposed for deliberate actions.

All the following will disappear

  • The current thresholds for misdeclaration penalties,
  • the concept of a Voluntary Disclosure removing liability for a penalty, and
  • ‘reasonable excuse’.

Once details of the penalties are known we will circulate these.

Elysian Associates

September 2007

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