What penalties are involved in tax investigations?


Penalties are now very much codified and difficult to avoid. The penalties are calculated on a published scale which takes into account the behaviour of the taxpayer. The penalty is therefore significantly higher if the failure to disclose is deliberate, and even higher if there is an attempt to conceal the lack of disclosure. Typically a penalty can add another 15%-300%. An inadvertent mistake is likely to suffer a lighter penalty.


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