Taxation Ppt Rahesh

8/2/2019 Taxation Ppt Rahesh

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A

Presentation on

Offences an Penalties

Submitted ToProf.Shewta Mehta

Submitted ByRahesh Sutariya

Roll no.98


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Types of tax offences

Absolute liability offences

Failing to keep the books and documents as requiredby law, failure to provide information (including taxreturns and forms) to Inland Revenue, and failure to

issue a tax invoice within 28 days after a request ismade, are absolute liability offences.

The penalties for conviction of an absolute liabilityoffence are up to:

$4,000 for a first offence $8,000 for a second offence

$12,000 for any subsequent offence


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Knowledge offences

Knowingly breaching a tax obligation may result

in a conviction for several offences. Such offences include knowingly:

If you didn't have the information requested, orfailed to make or account for schedular payments

(formerly withholding payments) for reasonsbeyond your control, you won't be prosecuted.

The penalties on conviction for knowledge

offences are up to: $25,000 for a first offence

$50,000 for a later offence.


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Evasion and similar offences

Certain actions are regarded as evasion offences if they are doneeither to:

evade the assessment or payment of tax by yourself or anyone else,or

obtain a refund or payment of tax in the knowledge that you're notlawfully entitled to it, or

enable someone else to obtain a refund or payment of tax in the

knowledge that the other person isn't lawfully entitled to it. Criminal offences relating to evasion include knowingly intending to

evade tax by:

not keeping legally required books and documents

not providing information, including tax returns and forms, when

required to do so providing altered, false, incomplete or misleading information,

including tax returns and forms

not making a legally required deduction or withholding of tax.


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Offences relating to court orders

We can seek a court order to obtain informationnecessary for fulfilling our statutory obligations.

Anyone convicted of failing to comply with such acourt order may be sentenced to imprisonmentfor up to three months, or fined up to $1,000.

Obstruction

Obstructing Inland Revenue in carrying out itslawful duties, or in exercising its lawful powers, isan offence.

The penalty on conviction for obstruction is up to:

$25,000 for the first offence $50,000 for subsequent offences.


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Aiding or abetting

It is an offence to aid or abet someone else to commitan offence.

Conviction will result in the same penalty as that forthe person who committed the principal offence.

Employees and officers

An employee, agent or officer of a taxpayer commitsan offence if they were responsible for that taxpayercommitting an offence.

The employee will face a penalty if the principleoffence was:

caused by an action or omission of the employee, orwith the employee's knowledge, or

evasion committed by the employee.


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Service Tax Penalties

The Finance Act, 1994 provided for theimposition of penalties in the following caseswhen the assessee:

fails to pay service tax to the Government in time.fails to file half-yearly return with the department in

time or.

fails to obtain registration u/s. 69.

wilfully suppresses or conceals the value of taxableservice or furnishes inaccurate value of such taxableservice.


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The Finance Bill 2004 has substantially

enlarged the scope of Section 78 of theFinance Act, 1994 by clearly elucidating the

evasion on grounds of :

Fraud.Collusion.

Evasion.

Wilful misstatement.

Suppression of facts, or any contravention under

the parts or the rules.


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Section 79 provides for imposing a penalty for failureto comply with the notice issued to assessee under

Section 71. It is the duty of the assessee to produceany accounts, documents or other documents, etc., asthe Superintendent of Central Excise may call for thepurpose of verification of the Service Tax return filed

by the assessee. The jurisdiction to initiate the penaltyunder Section 79 vests with the Assistant or DeputyCommissioner of Central Excise. Thus, for failure tocomply with the provisions of Section 71 in respect ofself-assessment and verification of tax assessed by the

assessee, the penalty leviable is

a maximum of 10% and/or

a maximum of 50% or not more than 50%


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Service Tax Penalties For Non-registration

The penalty for non-registration is Rs 500 if the

Assessee fails to makean application for registration for Service Tax. (Sec75A)

Penalty For Late Payment Of Service Tax

The penalty for late payment of service tax issimple interest at the rate of 24% p.a. by whichcrediting of tax or any part thereof is delayed.(Sec. 75). Further, the Finance Act, 2002 hasproposed to reduce the rate of interest from 24%p.a. to 15% p.a. for the period for which thepayment of Service Tax is delayed.


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Panalty For Failure To Pay Service Tax

Penalty for failure to pay service tax is as follows:-

In addition to paying Service Tax and interest U/S

75, not less than Rs 100/- but which may extendto Rs 200/- for every day during which the failure

continues (Sec 76). However, the penalty should

not exceed the amount of Service Tax that the

assessee has failed to pay.


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Panalty For Failure To Furnish Return

The penalty for this may extend to an amount notexceeding Rs 1000/- (Sec 77).

Penalty For Suppressing The Amount Of TaxableServices

The penalty for this is as follows:-In additionto Service Tax and interest a sum, which shall not beless than but which shall not exceed twice the amountofService Tax that is sought to be evaded (Sec 78).

Penalty For Failure To Comply With Notice Of

Penal DemandFor this, the penalty is a sum not less than 105 butwhich shall not exceed 50% of the amount of ServiceTax that would have been avoided (Sec 79).


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Thank You

Taxation Ppt Rahesh

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