The rising cost of errors
Article Abstract:
The UK Customs and Excise Board (CEB) has announced new penalties to be implemented 1 April 1990 to supplement the new regime for serious misdeclaration and default interest for value added taxes. An immediate declaration of error to Customs and Excise will eliminate the possibility of penalty for serious misdeclaration, but automatically will incur a default interest assessment. The CEB announced that traders that normally delay notification to the end of the quarter can do so without fear of incurring a penalty, but such traders should carefully maintain records indicating the date on which the error became known and the effect on adjusting returns. The CEB has announced certain adjustments which will not be considered errors: partial exemption calculation annual adjustments; retail scheme annual adjustments; approved estimation procedures for input tax; and validly issued credit note adjustments.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1990
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Reasonable excuse - some you win, some you lose
Article Abstract:
The UK Board of Customs and Excise will not levy a full civil penalty for the default surcharge liability for lack of timely payment of value-added tax if the trader has a reasonable excuse. Two appeals to the Queen's Bench Division have defined reasonable excuse. Traders are statutorily obligated to send Customs a remittance for tax due within one month of the end of an accounting period. Failure to comply creates a liability to default surcharge. Insufficiency of funds as a reasonable excuse defense is permissible, but will only apply in rare cases. The court has also ruled that tax advice from accountants to a client precludes the defense of reasonable excuse in civil penalty cases since the advice is regarded as the performance of a task by a third party.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1989
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VAT: the control visit
Article Abstract:
Adherence to the Value Added Tax (VAT) law of 1973 is monitored by random control visits by VAT officials to appropriate businesses. This is to ensure that the appropriate accounting steps are used and to educate the taxpayer on implications for general business activities. The VAT official examines the business facilities and observes the functioning of the business. VAT will report any errors to the business for correction. Disputes may be handled locally.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1987
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