If a business makes all correct payments on time, but submits two late returns, what should be the expected conclusion?

The conclusion that no surcharge will be imposed is based on the regulations surrounding late submissions of tax returns. In many tax jurisdictions, while timely payments are crucial in avoiding penalties, late submissions may not automatically result in a fine if they do not occur frequently and if all other compliance obligations are met. In this case, the business has consistently made all correct payments on time, demonstrating diligence in their tax obligations.

Tax authorities often take into account a business's overall compliance history. If a business has a good record of timely payments, the occasional late return may be forgiven, especially if those instances are isolated. Instead of imposing a surcharge, the authorities might provide a warning or allow the business to rectify their filing status. This approach emphasizes the importance of encouraging compliance rather than penalizing businesses that may sporadically fall short in administrative tasks, such as timely submission, while otherwise fulfilling their financial obligations responsibly.

The other options, such as incurring fines, facing legal action, or triggering a mandatory audit, generally presume a more serious and ongoing non-compliance situation, which does not apply here given the business's record of timely payments.