May 18, 2022

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Errors and Omissions in Tax Return: Penalties and How to Treat Them

Taxpayers who have made errors or omissions in their tax returns are given the opportunity to regularize their situation in a timely manner, before facing harsher penalties. The envisioned system is the active penance system: let’s see together how it works.

If you have received letters from the Revenue Agency with requests Payments due but not madeit is possible to settle one’s position thanks to active repentance.

This mechanism allows you to pay the amounts due with Penalties reducedBefore dealing with the exorbitant fines offered by the revenue agency.

Let’s see in detail how diligent repentance works.

Effective penance: what is it all about?

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Taxpayers who committed Errors or omissions in the tax return They can regulate their situation through the so-called active repentance.

Effective repentance consists precisely of Possibility to settle tax violations and omissions prior to their verification, inspections, verification or other administrative activities of which the perpetrator has official knowledge. to pay Reduced penaltiesIts amount varies depending on the timing of repentance and the type of violations committed, the taxpayer can avoid falling into higher fines.


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Errors, omissions and underpayments can be reconciled by automatic implementation of Pay:

  • From Punishment to a lesser extent;
  • Fromtax due;
  • subordinate Interestscalculated on the statutory annual rate from the day the payment was to be made to the day the payment was actually made.
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Tax: How does the sanctions mechanism work?

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In case active repentanceThe Reduce administrative penalties to pay equal:

  • to 1/10 of the Ordinary Law in cases of non-payment of tax or deposit, if made within 30 days of the due date;
  • To 1/10 of the minimum expected non-submission of the return offer, if submitted with a delay of no more than 90 days, or to 1/10 of the minimum expected non-submission of the periodic return provided in the matter of VAT, if submitted with a delay of no more than about 30 days;
  • to 1/9 of the minimum if the adjustment for errors and omissions, even if they affect the determination or payment of tax, is made within the ninetieth day after the deadline for filing the return, or, in the absence of a periodic declaration, within 90 days of the omission or error ;
  • to 1/8 of the lower limit, if the adjustment of errors and omissions, even if they affect the determination or payment of the tax, is made within the deadline for filing the return relating to the year in which the offense was committed, or, in the absence of a periodic declaration, within one year from omission or error;
  • to 1/7 of the minimum, if the adjustment of errors and omissions, even if they affect the determination or payment of the tax, shall be made within the deadline for filing the return relating to the year following the year in which the violation was committed or, in the absence of a periodic declaration, within two years of omission or error;
  • to 1/6 of the lower limit, if the adjustment of errors and omissions, even affecting the determination or payment of tax, occurs after the deadline for filing the return relating to the year following the year in which the violation occurred, or when there is no periodic declaration, after more than two years of omission or error;
  • to 1/5 of the minimum if the adjustment of errors and omissions, even if they affect the determination or payment of tax, occurs after the discovery of the violation, except in cases of failure to issue tax receipts, tax receipts or transport documents or failure to install receipt issuing devices.
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