CH73540 - Penalties for Failure to Notify: Calculating the penalty: Calculation process: Unprompted disclosure calculation example - more than 12 months late

Viktor has notified us of his tax liability 15 months late. His failure to notify sooner was deliberate but not concealed. »Ê¹ÚÌåÓýapp notification was unprompted. »Ê¹ÚÌåÓýapp PLR is £55,000.

Step 1

»Ê¹ÚÌåÓýapp percentage for the quality of the disclosure (a) has been calculated as 80%.

Step 2

»Ê¹ÚÌåÓýapp maximum penalty (b) is 70% and the minimum penalty (c) is 20%.

So the maximum disclosure reduction (d) is 70 - 20 = 50%.

Step 3

»Ê¹ÚÌåÓýapp actual reduction percentage for disclosure (e) is 50 x 80% = 40%.

Step 4

Penalty percentage to be charged (f) is 70% - 40%= 30%.

Step 5

»Ê¹ÚÌåÓýapp penalty to be charged (g) is £55,000 x 30% = £16,500.