COM95070 - Payments: quarterly instalment payments: penalty for unpaid tax
If a company is liable to Debit Interest (Word 31KB) the legislation provides authority for prescribing circumstances in which the company may be liable to a penalty under TMA70/S59E(4) not exceeding twice the amount of that interest.
Like interest, a penalty will be charged only after a company has made its self assessment and the normal CT due date (nine months and one day after the end of the AP) has passed.
Regulation 13 sets out the prescribed circumstances, which are that the company or a person acting on its behalf
- Deliberately or recklessly fails to make the required instalment payments
Or
- Makes a fraudulent or negligent repayment claim under Regulation 6. For more information see section ‘Non Automatic Repayments’, subject ‘Early Repayment CTSA APs - Responsible Office’ (COM125060) and also CTM92650
The penalty is raised by the Inspector using the 394 set. It cannot be raised on COTAX.
See EM8301 and EM8330 for further information.
For a list of forms relevant to this subject, see COM95071.
For legislation applying to this subject, see COM95012.
