What is the penalty range for an inaccurate return where the error was deliberate and the taxpayer took steps to conceal it?
Answer and explanation
Correct answer: B. 30% to 100% of the potential lost revenue
- Step 1: HMRC penalties for inaccuracy depend on the behaviour.
- Step 2: Deliberate and concealed is the most serious category, with a range of 30% to 100%.
Answer
30% to 100% of the potential lost revenue.
Why not the others: 0% to 30% is the range for careless errors. 20% to 70% applies to deliberate but not concealed errors. 1% to 10% is not a range under the inaccuracy penalty regime.
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