ARTICLE · 22 JUNE 2015

HMRC Consultation On Penalties

BDO LLP

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HMRC has issued a 'discussion document' which looks at the future of compliance penalties in the modern environment of online filing.

United KingdomTax

Karmjit Mader

HMRC has issued a 'discussion document' which looks at the future of compliance penalties in the modern environment of online filing. Although this is the first stage of a long process (new legislation would be implemented at stage four) it does give businesses the opportunity to comment on the objectives and possible options for any new penalties regime.

The document sets out five principles for a new penalties regime as follows:

The penalty regime should be designed from the customer perspective, primarily to encourage compliance and prevent non-compliance. Penalties are not to be applied with the objective of raising revenues.
Penalties should be proportionate to the offence and may take into account past behaviour.

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