SUPERCEDED

XI.   Tax and Accounting Law Penalties

Under the Tax Collection Act, cumulative fines per incident can be levied for failure to comply with the tax and related laws and regulations. This is for non-monetary offenses.

Failure to comply with the Act on Accounting and Chart of Accounts can also result in fines as is also the case when the results can not be used to determine the tax obligation.

There are other fines (calculated on the tax payable), including ones for late payment of taxes and for the late filing of tax returns. How these draconian fines are interpreted is another matter, but often not too liberally! At least the reduction of the rate in 1995 was a movement in the right direction. However, with those having liquidity problems, it can result in mathematical inability to pay the penalty and future tax (since such penalties are non-tax deductible) ... actually, rather like the situation which existed in the USA and has only recently been slightly modified.