Britain’s top tax man said there are no penalties for “innocent” tax errors.
Jim Harra, CEO of HM Revenue & Customs (HMRC) made the comments to the Commons Public Accounts Committee.
The MPs seized the opportunity to question Mr Harra about the furore surrounding Conversative Party Chairman Nadhim Zahawi and his recent tax claims.
Mr Zahawi said the payment of an HMRC fine of more than a million pounds was an “innocent error.
Mr Harra stressed he could not comment on individual cases.
However, he made it clear HMRC did not impose penalties when someone had taken “reasonable care” over their tax returns.
He said: “There are no penalties for innocent errors in your tax affairs.
“So, if you take reasonable care, but nevertheless make a mistake, whilst you will be liable for the tax and for interest if it’s paid late, you would not be liable for a penalty.
“But if your error was as a result of carelessness, then legislation says that a penalty could apply in those circumstances.”
Mr Zahawi faces a conduct investigation by the Prime Minister’s ethics adviser.
The Tory chairman has agreed his HMRC tax files can be handed over to the investigation.
PM Rishi Sunak, said:
“I’m not going to pre-judge the outcome of the investigation; it is important that the independent adviser is able to do his work.”
It’s reported Mr Zahawi paid an outstanding tax bill of £4.8 million – including a 30% penalty charge.
