An increasingly tough stance on behavioural penalties

In a Tax Journal article, Senior Associate Sophie Rhind and Associate Elvira Colomer Fatjó outline how the Government’s decision to develop proposals to simplify and strengthen behavioural penalties will impact taxpayers.

Behavioural tax penalties for “careless”’ and “deliberate” conduct can be a powerful tool for HMRC, and the Government has now confirmed that it will develop proposals to simplify and strengthen behavioural penalties, which will include tougher penalties for deliberate behaviour. While it is certainly hoped that this will help to reduce tax avoidance and evasion, it is vital that significant tax-geared penalties are applied appropriately. In advance of these changes, we are already seeing HMRC’s increased appetite for pursuing such penalties, and taxpayers would be wise to keep this in mind when dealing with their tax affairs.

Read more.