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Take care...

18 February 2009 / Nigel Popplewell
Issue: 4194 / Categories: Comment & Analysis , Admin
...when completing returns, warns NIGEL POPPLEWELL CTA (Fellow) in light of HMRC’s new penalty regime

KEY POINTS

  • What is ‘reasonable care’?
  • Different standards of reasonable care will apply.
  • HMRC have to prove if a taxpayer has been careless.
  • Likely importance of relevant third parties in producing evidence.
  • The courts will have their say.

The common law concept of ‘reasonable care’ is to be imported into the statutory scheme for the determination of penalties if documents of various kinds contain inaccuracies that are careless.

This article considers inaccuracies due to carelessness and in particular the concept of ‘reasonable care’ in the context of the new penalty regime that will apply to returns for certain taxes - i.e. income tax including PAYE and the contractors instruction scheme capital gains tax corporation tax and VAT - which are submitted after 1 April 2009.

Inaccuracies due to carelessness will...

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