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Tax Penalties

Are penalties proportionate to the offence/failure

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It appears that HMRC's penalties may be an abuse of its authority. It is interesting that the US Supreme Court has struck out the verdict of the Indiana Supreme Court which had authorised the seizure by the State of Indiana of a vehicle worth $42,000 - more than four times the maximum penalty for the offence. See https://www.supremecourt.gov/opinions/18pdf/17-1091_5536.pdf 
It is worth noting that, in arriving at its verdict, the SCOTUS harked back to the Magna Carta. Perhaps a brave soul would test one or more of these penalties in our Supreme Court. 

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By SteveHa
21st Feb 2019 13:44

Proportionality and fairness have been tested several times, and you could search for them amongst the penalty tribunal decisions to see how our courts view them.

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By Duggimon
21st Feb 2019 14:19

BRB, off to appeal a UK tax penalty with the US Supreme Court.

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By Rammstein1
21st Feb 2019 14:31

I had a client being investigated by the IRS about not declaring some UK ISA's. The penalties could have been as much as the actual investments, not the income received. I think the UK penalty system is slightly better!

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Replying to Rammstein1:
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By Dib
21st Feb 2019 16:48

And our chaps don't carry guns unlike some of the IRS (Series 1811 Special Agents)!

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Replying to Dib:
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By Rammstein1
22nd Feb 2019 08:52

His case was being looked after by a special agent and they even noted when he flew into and out of the the US like some Colombian drug lord! Many sleepless nights for him but settled amicably after a few years.

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