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FA98/SCH18/PARA18

If a company fails to deliver a company tax return for an accounting period:

• within 18 months after the end of the accounting period,

or

• if the filing date is later than 18 months after the end of the accounting period, by the filing date,

it is liable to a tax-related penalty.

»Ê¹ÚÌåÓýapp amount of the penalty is:

• 10% of the tax unpaid if the return is delivered within two years after the end of the accounting period,
• 20% of the tax unpaid in any other case.

When a notice to deliver is given late, or there is a short accounting period at the beginning of a long period of account, the filing date may fall after the 18-month point. In this case, the company incurs no tax-related penalty provided it delivers its return by the filing date.

»Ê¹ÚÌåÓýapp unpaid tax is the amount of the tax payable by the company for the accounting period that remains unpaid on the date that the company first incurs a tax-related penalty. This is the later of:

• 18 months plus one day after the end of the accounting period,

and

• the filing date.