Tax advisers protest proposed penalties for late filing
Tax advisers are protesting against HMRC plans for penalties on late filing of tax returns and payment of tax bills
Controversial proposals put forward by
HM Revenue & Customs
(HMRC) to introduce penalties for late filing of tax returns, potentially
increasing to 100% of the tax bill in cases of deliberate failure to file, have
drawn strong objections from tax advisers.
John Whiting of PricewaterhouseCoopers told
the Financial Times he objected ‘very strongly’ to tax-based penalties
for late returns, because the taxpayer would also be charged interest based on
the amount of tax due.
Taxpayers also face penalties for late payment which could rise to 10% to 30%
of the unpaid tax after a year, the HMRC said in a consultation document
published last week together with other proposals aimed at streamlining the
administration of taxes and establish the rights and obligations of taxpayers.
Roy Maugham of UHY Hacker
Young said the proposed penalty regime to encourage filing and payment of
tax on time was more draconian than the existing regime.
Further reading:
Read
the Financial Times story