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Hi,
Regarding penalties for incorrect returns, I am aware that these are dependant on behaviour, however are these amounts still correct:
– No penalty where taxpayer simply makes a mistake
– 30% where taxpayer fails to take reasonable care
– 70% where error is deliberate
– 100% where there is also concealment of errorI am asking as I came across an answer which told me that the maximum reduction would be to 20% of the tax unpaid.
Thanks!
The percentages you quote are the maximum penalties, the 20% you reference is probably referring to the minimum percentage for a voluntary disclosure of a deliberate understatement. I would suggest however that rather than worrying about small points of admin you do firstly ensure that you can competently prepare the tax computations that you will be asked to prepare in the exams. I always think the detailed admin points are the icing on the cake, all very nice but no good without the cake!!
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