Are late tax return penalties deductable?

[dicky113]

Just suppose someone didnt get their tax return in on time yesterday and received the �100 fine. If this silly person was self employed could they deduct the fine and any interest accrued as a business expense or part of cost of sales in a future tax return?

[dotjhawkes]

No, that would come under disallowable expenses. The offices were open til 7.30 last night and Monday night! If you take it in today it is unlikely you would be fined as they have such large volume to sort out. They will put today's stamp on the front of the form, but it is better that than leave it any longer and have a definate fine. Also, if it is filled in incorrectly, you will also be fined, by that i mean, if they have to return it because you have not signed it, or you have missed out filling in a box and they have to return it, you will be penalised,

[buildersmate]

Doesn't work for speeding fines, so I don't see why IR would regard this as a valid business expense.

[dotjhawkes]

But the �100 fine is an immediate fine, which you will have to pay when you hand your return in.

[scottlouie123]

Unfortunately, tax return penalties and fines are not deductible expenses.

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