Whilst taking professional advice will usually mean a taxpayer has taken reasonable care, not taking advice does not necessarily mean a taxpayer has been careless, write Adam Craggs and Constantine Christofi (RPC).
‘No penalties for innocent mistakes’
The penalties regime is designed to ‘encourage’ voluntary compliance by taxpayers with their tax obligations. Suffice to say that the tax system in the UK is far from straightforward. If a taxpayer takes reasonable care but gets something wrong nonetheless whilst they will have to pay any tax that they ought to have paid (with interest) they will not be penalised for their error. That though begs the question what does taking ‘reasonable care’ involve?
The focus...
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Whilst taking professional advice will usually mean a taxpayer has taken reasonable care, not taking advice does not necessarily mean a taxpayer has been careless, write Adam Craggs and Constantine Christofi (RPC).
‘No penalties for innocent mistakes’
The penalties regime is designed to ‘encourage’ voluntary compliance by taxpayers with their tax obligations. Suffice to say that the tax system in the UK is far from straightforward. If a taxpayer takes reasonable care but gets something wrong nonetheless whilst they will have to pay any tax that they ought to have paid (with interest) they will not be penalised for their error. That though begs the question what does taking ‘reasonable care’ involve?
The focus...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
