What is the potential maximum penalty for careless errors in VAT returns if prompted?

In the context of VAT returns, the potential maximum penalty for careless errors is indeed set at a percentage of the tax due, with the correct answer indicating a ratio that corresponds to 35% of the additional tax owed due to these errors. Careless errors refer to those mistakes that occur as a result of not taking reasonable care, meaning there was some degree of negligence involved in preparing the VAT return.

VAT-related penalties are structured on a sliding scale based on the nature of the errors made, and this penalty percentage for careless errors is designed to encourage taxpayers to exercise appropriate diligence and attention when completing their returns. Other options present different penalty values that do not align with the established guidelines for careless errors in VAT returns, while the 35% rate accurately reflects the standard penalty for this level of mistake as defined by tax authorities.