Tx notes fa22 Final

11. Appeals & Disputes 
The individual can appeal against amendments to the income tax return.
The appeal must normally be made within 30 days of the amendment.
The appeal must state the grounds of appeal.
The process of the appeals procedure is as per VAT chapter 25.
12. Penalties for incorrect returns 
The amount of penalty is based on the amount of tax understated, but the actual penalty payable is 
linked to the taxpayer’s behaviour, as follows:
(a)
there will be no penalty where a taxpayer makes a genuine mistake.
(b)
there will be a moderate penalty (up to 30% of the understated tax) where a tax payer fails to 
take reasonable care.
(c)
there will be a higher penalty (up to 70% of the understated tax) if error is deliberate.
(d)
there will be an even higher penalty (up to 100% of the understated tax) where there is also 
concealment of the error.
A penalty will be substantially reduced where the taxpayer makes disclosure, especially unprompted 
disclosure to HMRC.
See “Standard Penalties for Errors” in Rates and Allowances information provided in the exam
13. Income Tax Fraud 
There is a statutory o
ff
ence of evading income tax. The penalty may be up to seven years in prison 
or an unlimited fine or both.
You may now attempt Practice Questions 36 & 37



---

128
Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
June 2023 to March 2024 exams
Watch free ACCA TX lectures

---

129
Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community