Relaxed tax penalties announcement welcomed

The Institute of Chartered Accountants has welcomed Revenue Minister Peter Dunne's announcement today that some of the inequities of the current tax penalty rules are to be addressed.

Institute tax director Craig Macalister said the current shortfall penalty effectively penalises taxpayers for doing the right thing.

"The severity of the current penalty regime discourages taxpayers from admitting mistakes. It is simply too expensive to confess.

"Today's announcement will go a long way toward addressing some of the harsh outcomes under the current penalty regime. The penalty rules need to be capable of delivering outcomes that strike the right balance between penalising taxpayers for inappropriate behaviour and recognising that the well-meaning can make mistakes.

"The Institute is pleased to see Inland Revenue and the minister addressing this important issue."

ENDS

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