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<h1>Penalties for Non-Compliance with Expenditure-tax Act Notices: Section 18 Allows 10%-50% Penalty on Tax Avoidance.</h1> Section 18 of the Expenditure-tax Act, 1987, addresses penalties for non-compliance with notices issued under the Act. If an Assessing Officer determines that an individual has failed to comply with a notice under section 9(1), they may impose a penalty. This penalty is in addition to any tax owed and ranges from a minimum of ten percent to a maximum of fifty percent of the tax amount that would have been avoided if the individual's chargeable expenditure return had been accepted as accurate.