Penalties for errors that affect tax return
What happens if you file a tax return with errors, inaccuracies or inadequacies.
Getting your right tax has never been that easy. Any omissions, inadequacies or inaccuracies affecting the tax base can be easily picked up by the tax authorities. They have been trained to identify such errors or inadequacies. If such errors are discovered, you may have to pay extra or receive a penalty notification.
Penalties for filing an inadequate return
You can pay between 1.5% to maximum 50% interest in arrears per month when your return has errors that leads to an adjustment by the tax authority. The interest is calculated on the bases of expenses to be borne by the taxpayer following the notification issued after the last control.
An inaccuracy penalty is charged when you submit a tax return document with a mistake which results in you understating your tax liability. This mistake could be deliberate, careless or done deliberately and concealed.
The penalty is considered as ‘late payment’ of taxes. Negligence or ignorance is not considered when it comes to taxes. It rather indicates that you failed to take reasonable care.
See additional penalties that are applied and why a penalty is applied.
Next week, we will see what happens when a taxpayer fails to file a return.
Don’t hesitate to get in touch with us for any tax and accounting questions.
NB: This newsletter has been prepared for information purposes only. It is not intended to provide, and should not be relied on for, tax, accounting or legal advice. You need to consult your own tax, accounting or legal advisors before engaging in any transaction.
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