28 of September HM revenue and Customs (HMRC) published consultation about new penalties regime for participation in VAT fraud. If the government decides to proceed it will be included in Finance Bill 2017. Based on HMRCHMR experience the vast majority of customers meet their obligations. Penalties are only applied to a small minority of taxpayers. The penalty regime has to encourage compliance and prevent non-compliance. There is no objective to raise revenue with penalties. Penalties should be proportionate to the offence and may take into account past behaviour however consistent and standardised approach has to be applied. Penalties are designed in the way that compliant customers are in a better position than the non-compliant customers therefore penalties have to be a real threat.Read More »