Mark McLaughlin warns that delaying tactics by taxpayers for tax compliance purposes can have unfortunate consequences.
Taxpayers are generally aware that submitting their tax returns could trigger substantial tax bills. If faced with a large tax liability and insufficient funds to pay, some individuals might be tempted to put off submitting their tax returns to HM Revenue and Customs (HMRC) to delay the dreaded tax bill, sometimes for several years.
Unfortunately, this tactic is not only flawed, but potentially expensive.
Think of a number…
In the absence of a completed tax return, HMRC has powers to estimate the tax due, in the form of a determination, within three years after the tax return filing date.
HMRC’s determination is treated as a self-assessment, so the estimated tax becomes payable. However, if the
