# Finance Act 1998, Paragraph 23

Extent: E+W+S+N.I.

(1) A company which fails to comply with paragraph 21 in relation to an accounting period is liable to a penalty not exceeding £3,000, subject to the following exceptions.
(2) No penalty is incurred if the records which the company fails to keep or preserve are records which might have been needed only for the purposes of claims, elections or notices not included in the return.
(3) No penalty is incurred if—
(a) the records which the company fails to keep or preserve are statements in writing such as are mentioned in—
(i) section 1100(1) of the Corporation Tax Act 2010 (amount of distribution, but formerly amount of qualifying distribution and tax credit), or
(ii) section 495(1) or 975(2) or (4) of the Income Tax Act 2007 (statements about deduction of income tax),
provided by the company or person there mentioned whether after the making of a request or otherwise, and
(b) an officer of Revenue and Customs is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.

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Source: https://www.legislation.gov.uk/ukpga/1998/36/schedule/18/paragraph/23 (the official version)
Page: https://openlegislation.uk/finance-act-1998/schedule-18/paragraph-23
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.