What happens if tax is declared later than it should be?
Where an inaccuracy results in the declaration of an amount of tax later than it should have been (rather than not being declared or being under-declared), the potential lost revenue on which the penalty is based is set by law at 5 per cent of the delayed tax for each year of the delay. For indirect taxes, if the period is less than a year, the charge is a lower, percentage, which is the equivalent of 5 per cent in a year.
