Chapter 7 - CTSA Penalty Regime Flashcards Preview

Paper 2: Corporate Tax & VAT > Chapter 7 - CTSA Penalty Regime > Flashcards

Flashcards in Chapter 7 - CTSA Penalty Regime Deck (6)
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1

Penalties for Failure to Notify Changeability

Penalty is charged as a % of the amount of CT which is unpaid 12 months after the end of the accounting period. See joggers/leg for the penalty amounts

2

Penalties for Late Returns

- Immediate £100 late filing penalty
- £10 a day up to 90 days where return > 3 months late
- Penalty of 5% of liability to tax (or £300 if greater) if return > 6 months late
- Additional penalties where returns are filed > 12 months late (see joggers/leg)

3

Penalties for Failure to Keep Records or Provide Documents

A penalty of £3,000 per AP applies where there has been a failure to keep records for 6 years from AP end

A company failing to provide documents for the purpose of an enquiry is liable to a penalty of £300. If failure continues, further penalties of up to £60 per day may be imposed.

4

Penalties for Incorrect Returns

The penalties are a percentage of lost revenue, see leg for rates.
A penalty for a careless error can be suspended for two years

5

Penalties for Late Payment of Tax

For CT, a 5% penalty of outstanding tax is charged:
- after filing date of return
- where tax is outstanding more than 3 months after filing date
- where tax is outstanding more than 9 months after filing date

6

General Note

SEE LEG, JOGGERS OR MANUAL