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Readers' Forum
Replies to Queries — 3
Punishing penalty
Our client is considerably in arrears with his tax returns and daily penalties have been imposed in respect of the 1997-98 and 1998-99 tax returns.
Readers' Forum
Replies to Queries — 3
Punishing penalty
Our client is considerably in arrears with his tax returns and daily penalties have been imposed in respect of the 1997-98 and 1998-99 tax returns.
The main issue is the 1997-98 tax return, since under self assessment the last possible filing date is five years after the normal filing date, 31 January 2004. The daily penalties commenced in 2003, but finished several months after the deadline of 31 January 2004.
This produced a bizarre situation since, on the expiry of the 31 January 2004 deadline, it was no longer possible for our client's 1997-98 self assessment to replace the Inland Revenue's determination of our client's liability for that year. However, he was continuing to incur penalties for late submission of the return.
We submitted an appeal to the Revenue on the grounds that the penalties were unjust, as the Revenue was already gaining because its determination of our client's tax liability was considerably in excess of his true liability as shownon his tax return. The Revenue's response was that a tax return was required since this would enable it to raise a further assessment if the self assessment exceeded the original determination of our client's liability for the year.
Can this be correct?
(Query T16,494)
