Paragraph 15

After that paragraph insert—

“Penalties for inaccurate information and documents

40A

(1)

This paragraph applies if—

(a)

in complying with an information notice, a person provides inaccurate information or produces a document that contains an inaccuracy, and

(b)

condition A or B is met.

(2)

Condition A is that the inaccuracy is careless or deliberate.

(3)

An inaccuracy is careless if it is due to a failure by the person to take reasonable care.

(4)

Condition B is that the person—

(a)

discovers the inaccuracy some time later, and

(b)

fails to take reasonable steps to inform HMRC.

(5)

The person is liable to a penalty not exceeding £3,000.

(6)

Where the information or document contains more than one inaccuracy, a penalty is payable for each inaccuracy.”