This process meant that numerous of this taxpayers that are individual did not necessarily feel acceptably informed of possible problems with their taxation affairs. Interest could consequently have already been accruing for a much longer period than will have been the instance in the event that income tax owed was compensated at a youthful date.
Sir Amyas MorseвЂ™s review highlighted circumstances where the accrued interest ended up being more than the income tax due. The amounts charged appear disproportionate while interest is not punitive and is only designed as recompense for the time when tax has not been paid, these cases are exceptional and the length of time over which interest accrued could mean that, especially when compared to much lower current rates of interest.
Taking into consideration the effect on interest liabilities whenever enquiries remain available for the significant period and/or rates of interest are specially high, this Review concludes that the us government should: