Background information (continued)
In summary, an inaccuracy made by a person in a document or return may be
- an inaccuracy made despite the person taking reasonable care in which case no penalty will be due, or
- careless, or
- deliberate but not concealed, or
- deliberate and concealed.
Penalties for inaccuracies are designed to address the behaviour that led to the inaccuracy.
Penalties for deliberate inaccuracies are therefore higher than those for careless inaccuracies.
There are two deliberate categories within the legislation to reflect different degrees of seriousness. Higher penalties are charged where a person has taken active steps to cover up a deliberate inaccuracy.