Government publishes Finance Bill 2007
The Government has published the Finance Bill 2007, which enacts many of the Budget measures announced by Chancellor Gordon Brown on March 21.
The Bill is designed to streamline the penalty system for incorrect tax returns and will also introduce new powers for criminal investigations by HM Revenue and Customs (HMRC).
In addition, the Bill will introduce changes to the penalty regime for incorrect returns on a range of forms, including income tax, corporation tax and PAYE. There will now be one single penalty system based on a combination of the amount of tax understated and whether the taxpayer deliberately sought to underestimate payments.
The Bill, which also introduces a concept of suspended penalties, will apply for tax return periods which begin after March 31, 2008.
Taxpayers who have made genuine mistakes when filling out their forms will not be penalised. However, there will be moderate penalties imposed if it is thought that a taxpayer has failed to take reasonable care, and higher penalties for deliberate action.
HMRC said that the Bill would also change the filing dates for self-assessment tax returns that are issued on or after April 2008, with different dates for paper and online returns.
Copies of the Bill are available from the Parliamentary website at: www.parliament.uk.
Source: HM Treasury, March 29 2007 (VS)
Next Step:
Please contact us if you need further advice, have any questions about our services, would like a free consultation or a fixed fee quote.
Call us now on 01444 484732
