Tax penalties: NAO takes the BIK-uit?
The effectiveness of the National Audit Office (NAO) as a taxpayer safeguard has more than once been called into account. Not only did it misunderstand the benefits in kind rules relating to its own employees but it is also taking an unorthodox line in the tax treatment of the pecuniary liabilities of its employees too.
The NAO is currently facing tax penalties and interest from HMRC of £8,000 on account of the undeclared taxable benefits in kind of Comptroller and Auditor General Sir John Bourn, when in office.
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