ACCA Applied Skills · Taxation (UK) · Penalties for non-compliance
Which one of the following gives the maximum standard penalty, as a percentage of the potential lost revenue, for a careless error in a tax return?
The maximum penalty for a careless error is 30% of the potential lost revenue. Higher maximums of 70% and 100% apply only to deliberate behaviour. The 15% figure is the minimum for a prompted disclosure of a careless error.
- A70%
- B15%
- C100%
- D30%Correct
Explanation
The table gives a maximum penalty of 30% for careless behaviour. 70% is the maximum for deliberate but not concealed errors, and 100% is for deliberate and concealed errors. 15% is the minimum for a careless error where disclosure is prompted, not the maximum.
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