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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15597
Experience:  International tax
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Good day, We would like to know what happens if a corporation

Resolved Question:

Good day,
We would like to know what happens if a corporation has failed to declare all its income to the IR. Does it have the option to do it anyway and for how long? Does it have to pay any fines or just the applied extra taxes? Last question: How long does the IR have the right to request any such additional taxes?
We thank you in advance.
Yours sincerely,
Anastasios Konstas
Attorney at Law at the High Court of Athens
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello,HMRC can make a discovery assessment up to six years after the end of a Corporation Tax accounting period - or 21 years after the accounting period if the mistake was because of the company's careless or fraudulent behaviour.Any penalty that may be applied is based on the tax owed and the reason. HMRC won’t charge a penalty if the corporation had a reasonable excuse. The shortage of funds or reliance on another person i snot acceptable. A penalty based on the deliberate avoidance by the corporation would have a 100% rate of penalty base don the tax owed.If the actions were not deliberate a 30% rate may apply. A corporation may come forward prior to an enquiry and correct their mistake. This would assist in having any penalty set aside or reduced.If it has only been 12 months since the accounting period ended and the company advised of the correction, the penalty would not be applied.I sincerely ***** ***** information is helpful but if the corporation has many years of undeclared income it would be advisable to retain professional assistance local to the corporation.
Customer: replied 2 years ago.

When I saw your answer for the first time, I could only see the first paragraph of your answer. This is why the rating was so bad. Now that I have seen the whole answer I want to change the rating, but I do not know how.

Expert:  TaxRobin replied 2 years ago.
Thank you for the explanation. I was confused as to why. You should be able to rate now.
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