What is a consequence of failing to submit a self-assessment tax return on time?

What is a consequence of failing to submit a self-assessment tax return on time?

• A. Loss of tax deductions
• B. Increased audit likelihood
• C. Late payment penalties
• D. Immediate tax reassessment

Answer: (C)

Failing to submit a self-assessment tax return on time results in late payment penalties, which is an established consequence under tax compliance regulations. The tax authority imposes these penalties to encourage timely submission and payment of taxes owed. When an individual or business does not file by the deadline, they may incur automatic penalties, which can escalate over time if the return remains unfiled or unpaid. This consequence is directly aimed at maintaining the integrity of the tax system and ensuring that all taxpayers meet their obligations punctually. The application of late payment penalties acts as a deterrent to prevent taxpayers from delaying their submissions, ultimately promoting a fair and orderly tax administration process.

Failing to submit a self-assessment tax return on time results in late payment penalties, which is an established consequence under tax compliance regulations. The tax authority imposes these penalties to encourage timely submission and payment of taxes owed. When an individual or business does not file by the deadline, they may incur automatic penalties, which can escalate over time if the return remains unfiled or unpaid.

This consequence is directly aimed at maintaining the integrity of the tax system and ensuring that all taxpayers meet their obligations punctually. The application of late payment penalties acts as a deterrent to prevent taxpayers from delaying their submissions, ultimately promoting a fair and orderly tax administration process.