Penalties for inaccuracies – Prompted and unprompted disclosure by Rebecca Benneyworth

This week I have been taking a look at the penalty reduction rules which replace the old concept of mitigation.

The old penalty system in relation to direct tax generally prescribes a penalty of up to 100% of the tax lost, which is then mitigated for size, gravity, disclosure and co-operation. This process ends when the new regime commences (although note that the commencement is return driven, so there will still be penalties around under the old rules for some time to come yet).