CH63600 - Penalties for Failure to File on Time: Calculating the penalty: Calculation process: Calculating the 12 month further penalty
Once you have determined the person’s behaviour, see CH62200, CH62440 and CH62760, you can charge the appropriate penalty.
A person can demonstrate more than one behaviour regarding information in the return. The penalty is calculated using the highest penalty percentage that is applicable.
This means that the penalty is the highest of
- 100% of the tax liability that would have been shown in the return where information was deliberately withheld and was concealed,
- 70% of the tax liability that would have been shown in the return where information was deliberately withheld, but was not concealed, and
- 5% of the tax liability that would have been shown in the return where information was not deliberately withheld.
Note that higher penalty percentages may apply where the information withheld involves an offshore matter, see CH62260+.
If a person is liable to more than one late filing penalty that is calculated on their tax liability, for example, 6 month and 12 month further penalties, then the total of those penalties must not exceed 100% of their liability to tax, see CH63620 for an example. However, if the information withheld involves an offshore matter, the 100% limit is replaced with
- 150% for category 2 information, and
- 200% for category 3 information, see CH112600.
The 100% limit is not increased for category 1 information.