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Penalties by country

The main penalties that can apply to an incorrect research and development tax claim in each of the five countries covered on this site, for the claimant and for the advisers who prepare or promote claims.

On this page
  1. Notes
  2. Sources

This page compares the main penalties that can follow an incorrect research and development (R&D) tax claim in the five countries covered on this site. It sets out the principal penalty on the claimant, the penalties that can reach advisers and preparers, and how the adviser penalties are measured. Whether any penalty applies depends on the facts and on the defenses in each statute. Each cell cites the same source as the matching country page, and the notes below give the detail the table leaves out. The page describes the rules only and makes no recommendation.

This table simplifies each country's rules for comparison. See the country pages for detail and sources. Last reviewed pending.

Country Main penalties on the claimant Penalties that can reach advisers How adviser penalties are measured
United States Accuracy-related penalty of 20 percent of the underpayment; 20 percent penalty on an excessive refund claim1Source 1Office of the Law Revision Counsel, 26 U.S.C. 6662, Imposition of accuracy-related penalty on underpayments, subsections (a), (b), (c) and (d)(1), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapA-partII-sec6662.htm (accessed 11 October 2026).2Source 2Office of the Law Revision Counsel, 26 U.S.C. 6676, Erroneous claim for refund or credit, subsections (a), (b) and (d), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6676.htm (accessed 11 October 2026). Preparer understatement penalty; aiding and abetting penalty; Circular 230 sanctions for practitioners3Source 3Office of the Law Revision Counsel, 26 U.S.C. 6694, Understatement of taxpayer's liability by tax return preparer, subsections (a), (b) and (d), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6694.htm (accessed 11 October 2026).4Source 4Office of the Law Revision Counsel, 26 U.S.C. 6701, Penalties for aiding and abetting understatement of tax liability, subsections (a), (b) and (f)(2), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6701.htm (accessed 11 October 2026).5Source 5Treasury Department, Circular No. 230, 31 CFR 10.50, Sanctions, paragraphs (a) and (c)(1) to (c)(2). https://www.ecfr.gov/current/title-31/subtitle-A/part-10/subpart-C/section-10.50 (accessed 11 October 2026). Greater of $1,000 or 50 percent of the preparer's income from the return or claim, rising to $5,000 or 75 percent for willful or reckless conduct3Source 3Office of the Law Revision Counsel, 26 U.S.C. 6694, Understatement of taxpayer's liability by tax return preparer, subsections (a), (b) and (d), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6694.htm (accessed 11 October 2026).
United Kingdom Inaccuracy penalty of up to 100 percent of potential lost revenue, depending on behavior and disclosure6Source 6HM Revenue and Customs, Penalties for inaccuracies in returns and documents: CC/FS7a (updated 21 July 2026), sections "When we may charge you a penalty for an inaccuracy", "When we won't charge you a penalty for an inaccuracy", "How we work out the amount of a penalty", "How we can suspend a penalty", "When a company officer may have to pay some or all of a company's penalty for a deliberate inaccuracy" and "If you've deliberately done something wrong". https://www.gov.uk/government/publications/compliance-checks-penalties-for-inaccuracies-in-returns-or-documents-ccfs7a/compliance-checks-for-penalties-of-inaccuracies-in-returns-or-documents-ccfs7a-factsheet (accessed 11 October 2026). Sanctionable conduct penalties since 1 April 2026; registration sanctions7Source 7HM Revenue and Customs, Compliance Handbook, CH176100, "Sanctionable conduct by tax advisers: Overview" (manual updated 7 October 2026). https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch176100 (accessed 11 October 2026).8Source 8HM Revenue and Customs, Mandatory Tax Adviser Registration manual, MTAR30400, "Sanctions and safeguards: financial penalties for prohibited interactions" (manual updated 8 October 2026). https://www.gov.uk/hmrc-internal-manuals/mandatory-tax-adviser-registration/mtar30400 (accessed 11 October 2026). Up to 70, 85 or 100 percent of potential lost revenue, with a minimum of £7,5007Source 7HM Revenue and Customs, Compliance Handbook, CH176100, "Sanctionable conduct by tax advisers: Overview" (manual updated 7 October 2026). https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch176100 (accessed 11 October 2026).
Ireland Charge under Case IV on four times an unauthorized amount; tax-geared penalties under section 1077F9Source 9Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C, subsection (10). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf (accessed 11 October 2026).10Source 10Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 47, sections 1055, 1077F (subsections (1) to (12)) and 1078(1A) and (2). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part47.pdf (accessed 11 October 2026). Penalty under section 1055 for deliberately assisting an incorrect return; offences under section 107810Source 10Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 47, sections 1055, 1077F (subsections (1) to (12)) and 1078(1A) and (2). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part47.pdf (accessed 11 October 2026). A fixed €4,000 under section 105510Source 10Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 47, sections 1055, 1077F (subsections (1) to (12)) and 1078(1A) and (2). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part47.pdf (accessed 11 October 2026).
Canada Gross negligence penalty of the greater of $100 and 50 percent of the amounts set out in the Act11Source 11Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 163(2), including paragraph (d), and 163(3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-163.html (accessed 11 October 2026). $1,000 claim preparer information penalty, jointly with the claimant; third party penalties12Source 12Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1), (5.2) and (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).13Source 13Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), section 163.2, subsection 163.2(1) (definitions of "culpable conduct", "gross compensation" and "gross entitlements") and subsections 163.2(2) to (6), (9) and (14). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-163.2.html (accessed 11 October 2026). Third party penalty: the greater of $1,000 and the lesser of the client's gross negligence penalty and $100,000 plus the adviser's gross compensation13Source 13Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), section 163.2, subsection 163.2(1) (definitions of "culpable conduct", "gross compensation" and "gross entitlements") and subsections 163.2(2) to (6), (9) and (14). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-163.2.html (accessed 11 October 2026).
Singapore Penalties of one to four times the tax undercharged or the cash payout, with fines or imprisonment in serious cases14Source 14Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 95(1) to (3). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr95- (accessed 11 October 2026).15Source 15Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37S(1) to (9). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37S- (accessed 11 October 2026).16Source 16Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), sections 96(1) to (4) and 96A(1) to (4). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96- and https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96A- (accessed 11 October 2026). Offences in sections 96, 96A and 37S reach anyone who acts to assist another person15Source 15Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37S(1) to (9). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37S- (accessed 11 October 2026).16Source 16Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), sections 96(1) to (4) and 96A(1) to (4). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96- and https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96A- (accessed 11 October 2026). The same multiples of the tax undercharged or the payout15Source 15Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37S(1) to (9). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37S- (accessed 11 October 2026).16Source 16Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), sections 96(1) to (4) and 96A(1) to (4). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96- and https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96A- (accessed 11 October 2026).

Notes

United States. No accuracy-related penalty applies to any portion of an underpayment where the taxpayer shows reasonable cause and good faith, subject to exceptions.17Source 17Office of the Law Revision Counsel, 26 U.S.C. 6664, Definitions and special rules, subsection (c), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapA-partII-sec6664.htm (accessed 11 October 2026). The aiding and abetting penalty is $1,000 per document, or $10,000 where the document relates to a corporation's tax.4Source 4Office of the Law Revision Counsel, 26 U.S.C. 6701, Penalties for aiding and abetting understatement of tax liability, subsections (a), (b) and (f)(2), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6701.htm (accessed 11 October 2026). A court may also enjoin a preparer who has, among other things, guaranteed the allowance of a tax credit.18Source 18Office of the Law Revision Counsel, 26 U.S.C. 7407, Action to enjoin tax return preparers, subsection (b), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap76-subchapA-sec7407.htm (accessed 11 October 2026).

United Kingdom. A failure to make a required claim notification, or to provide the additional information, makes the claim invalid rather than leading to a penalty.19Source 19HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD182000, "R&D Tax Reliefs: reformed reliefs: claims process: additional information form" (updated 25 August 2026), section "Statutory framework". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird182000 (accessed 11 October 2026). HMRC must publish details of an adviser charged a sanctionable conduct penalty of more than £7,500.7Source 7HM Revenue and Customs, Compliance Handbook, CH176100, "Sanctionable conduct by tax advisers: Overview" (manual updated 7 October 2026). https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch176100 (accessed 11 October 2026).

Ireland. The R&D credit legislation contains no penalty aimed specifically at claim preparers.9Source 9Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C, subsection (10). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf (accessed 11 October 2026). Revenue's guidelines state that a conviction under section 1078 can carry a penalty of up to €126,970 on indictment, or imprisonment, or both.20Source 20Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers (last reviewed September 2026), section 3. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026).

Canada. A claim preparer has a due diligence defense to the $1,000 penalty.12Source 12Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1), (5.2) and (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026). An adviser is not treated as engaging in culpable conduct solely because it relied in good faith on information from its client.13Source 13Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), section 163.2, subsection 163.2(1) (definitions of "culpable conduct", "gross compensation" and "gross entitlements") and subsections 163.2(2) to (6), (9) and (14). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-163.2.html (accessed 11 October 2026). No CRA publication or Tax Court decision applying the third party penalties to an SR&ED claim was identified on the country page.

Singapore. IRAS summarizes the penalties as up to 200 percent of the tax undercharged where there is no intention to evade, and up to 400 percent where there is.21Source 21Inland Revenue Authority of Singapore, Penalties for Errors in Tax Returns (last updated 2 March 2023), sections "Penalties for Errors in Tax Returns" and "Consideration of 'Individual Circumstances'". https://www.iras.gov.sg/taxes/corporate-income-tax/form-c-s-form-c-s-(lite)-form-c-filing/penalties-for-errors-in-tax-returns (accessed 11 October 2026). A promoter offence existed for the former PIC scheme; no equivalent EIS offence appears in the Act.22Source 22Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37L(1) and (2). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37L- (accessed 11 October 2026).23Source 23Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), table of contents, Parts 9 and 20. https://sso.agc.gov.sg/Act/ITA1947 (accessed 11 October 2026). Penalties are reduced or waived for a qualifying voluntary disclosure.24Source 24Inland Revenue Authority of Singapore, IRAS e-Tax Guide: IRAS' Voluntary Disclosure Programme (Thirteenth Edition, published 30 January 2026), paragraphs 2.1, 2.2, 4.1, 4.2, 9.2 and 9.3. https://www.iras.gov.sg/docs/default-source/e-tax/etaxguides_iras-voluntary-disclosure-programme.pdf?sfvrsn=7eac3cc6_37 (accessed 11 October 2026).

Sources

  1. Office of the Law Revision Counsel, 26 U.S.C. 6662, Imposition of accuracy-related penalty on underpayments, subsections (a), (b), (c) and (d)(1), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapA-partII-sec6662.htm (accessed 11 October 2026).  Back
  2. Office of the Law Revision Counsel, 26 U.S.C. 6676, Erroneous claim for refund or credit, subsections (a), (b) and (d), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6676.htm (accessed 11 October 2026).  Back
  3. Office of the Law Revision Counsel, 26 U.S.C. 6694, Understatement of taxpayer's liability by tax return preparer, subsections (a), (b) and (d), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6694.htm (accessed 11 October 2026).   Back
  4. Office of the Law Revision Counsel, 26 U.S.C. 6701, Penalties for aiding and abetting understatement of tax liability, subsections (a), (b) and (f)(2), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapB-partI-sec6701.htm (accessed 11 October 2026).   Back
  5. Treasury Department, Circular No. 230, 31 CFR 10.50, Sanctions, paragraphs (a) and (c)(1) to (c)(2). https://www.ecfr.gov/current/title-31/subtitle-A/part-10/subpart-C/section-10.50 (accessed 11 October 2026).  Back
  6. HM Revenue and Customs, Penalties for inaccuracies in returns and documents: CC/FS7a (updated 21 July 2026), sections "When we may charge you a penalty for an inaccuracy", "When we won't charge you a penalty for an inaccuracy", "How we work out the amount of a penalty", "How we can suspend a penalty", "When a company officer may have to pay some or all of a company's penalty for a deliberate inaccuracy" and "If you've deliberately done something wrong". https://www.gov.uk/government/publications/compliance-checks-penalties-for-inaccuracies-in-returns-or-documents-ccfs7a/compliance-checks-for-penalties-of-inaccuracies-in-returns-or-documents-ccfs7a-factsheet (accessed 11 October 2026).  Back
  7. HM Revenue and Customs, Compliance Handbook, CH176100, "Sanctionable conduct by tax advisers: Overview" (manual updated 7 October 2026). https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch176100 (accessed 11 October 2026).    Back
  8. HM Revenue and Customs, Mandatory Tax Adviser Registration manual, MTAR30400, "Sanctions and safeguards: financial penalties for prohibited interactions" (manual updated 8 October 2026). https://www.gov.uk/hmrc-internal-manuals/mandatory-tax-adviser-registration/mtar30400 (accessed 11 October 2026).  Back
  9. Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C, subsection (10). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf (accessed 11 October 2026).   Back
  10. Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 47, sections 1055, 1077F (subsections (1) to (12)) and 1078(1A) and (2). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part47.pdf (accessed 11 October 2026).    Back
  11. Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 163(2), including paragraph (d), and 163(3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-163.html (accessed 11 October 2026).  Back
  12. Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1), (5.2) and (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).   Back
  13. Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), section 163.2, subsection 163.2(1) (definitions of "culpable conduct", "gross compensation" and "gross entitlements") and subsections 163.2(2) to (6), (9) and (14). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-163.2.html (accessed 11 October 2026).    Back
  14. Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 95(1) to (3). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr95- (accessed 11 October 2026).  Back
  15. Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37S(1) to (9). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37S- (accessed 11 October 2026).    Back
  16. Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), sections 96(1) to (4) and 96A(1) to (4). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96- and https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96A- (accessed 11 October 2026).    Back
  17. Office of the Law Revision Counsel, 26 U.S.C. 6664, Definitions and special rules, subsection (c), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap68-subchapA-partII-sec6664.htm (accessed 11 October 2026).  Back
  18. Office of the Law Revision Counsel, 26 U.S.C. 7407, Action to enjoin tax return preparers, subsection (b), United States Code 2024 edition published by the Government Publishing Office. https://www.govinfo.gov/content/pkg/USCODE-2024-title26/html/USCODE-2024-title26-subtitleF-chap76-subchapA-sec7407.htm (accessed 11 October 2026).  Back
  19. HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD182000, "R&D Tax Reliefs: reformed reliefs: claims process: additional information form" (updated 25 August 2026), section "Statutory framework". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird182000 (accessed 11 October 2026).  Back
  20. Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers (last reviewed September 2026), section 3. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026).  Back
  21. Inland Revenue Authority of Singapore, Penalties for Errors in Tax Returns (last updated 2 March 2023), sections "Penalties for Errors in Tax Returns" and "Consideration of 'Individual Circumstances'". https://www.iras.gov.sg/taxes/corporate-income-tax/form-c-s-form-c-s-(lite)-form-c-filing/penalties-for-errors-in-tax-returns (accessed 11 October 2026).  Back
  22. Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37L(1) and (2). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37L- (accessed 11 October 2026).  Back
  23. Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), table of contents, Parts 9 and 20. https://sso.agc.gov.sg/Act/ITA1947 (accessed 11 October 2026).  Back
  24. Inland Revenue Authority of Singapore, IRAS e-Tax Guide: IRAS' Voluntary Disclosure Programme (Thirteenth Edition, published 30 January 2026), paragraphs 2.1, 2.2, 4.1, 4.2, 9.2 and 9.3. https://www.iras.gov.sg/docs/default-source/e-tax/etaxguides_iras-voluntary-disclosure-programme.pdf?sfvrsn=7eac3cc6_37 (accessed 11 October 2026).  Back