Tuesday, 18 October 2011

HMRC criticised for incorrect penalties

HM Revenue & Customs has come in for stinging criticism for failing to send out prompt notification of late filing penalties, which allowed some companies' penalties to start accumulating even before they were aware of them. A recent tribunal, Hok Limited & HMD Response International v HM Revenue & Customs, criticised the tax body for sending out penalties months after the deadline for returns for the year 2009/10.Geraint Jones, QC said that HMRC had put itself in a very poor position for failing to issue the notices promptly. "There can be no logical reason whatsoever for HMRC to delay sending out a penalty notice for four months so that, in effect, a minimum penalty of £500 will be levied unless the taxpayer has unilaterally realised that it has failed to undertake the necessary filing," he said. "That is the course that a fair organ of the state, acting in good conscience towards the citizens of the state, would adopt."HMRC has not, however, amended its systems since the tribunal ruling, and is still only sending out penalty notices as the fines start to accumulate, which is leaving some companies facing unexpected bills of more than £400.

http://www.50percenttax.co.uk/index/2011/10/18/hmrc-criticised-for-incorrect-penalties.html

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