VCP10781 | Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Period of grace should be applied retrospectively

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after 01/04/2009. Misdeclaration penalty will still apply where the due date is before 01/04/2009.

Please see the Compliance Handbook CH80000 Penalties for Inaccuracies for further details.

A period of grace normally applies to all visits after 20 March 1991. The concession should not be overridden without reference to Tax Administration, Litigation and Advice (TALA), see VCP10140.

Many traders have claimed that the provisions announced at the 1991 Budget should be applied retrospectively. Tax Administration, Litigation and Advice (TALA) have consistently rejected this argument, a view that has been supported at Tribunal by several different chairmen.