# Finance Act 2012, Paragraph 26C


(1) Potential lost revenue is attributable to a tax adviser’s sanctionable conduct if—
(a) an act within sub-paragraph (2) takes place, and
(b) the sanctionable conduct includes the tax adviser—
(i) doing the act on behalf of the client, or
(ii) advising or assisting the client to do the act.
(2) The following acts are within this sub-paragraph—
(a) the giving to HMRC of a document of a kind listed in the table in paragraph 1 of Schedule 24 to FA 2007 (error in taxpayer’s document) by a client where the condition in paragraph 1(2) of that Schedule is satisfied;
(b) a failure by a client to comply with an obligation specified in the table in paragraph 1 of Schedule 41 to FA 2008 (failure to notify etc);
(c) a failure by a client to make or deliver a return specified in the table in paragraph 1 of Schedule 55 to FA 2009 (failure to make returns etc) on or before the filing date where the failure continues after the end of the period of 12 months beginning with the penalty date;
(d) a failure by a client to make a return specified in the third column of the table in paragraph 1 of Schedule 25 to FA 2021 (failure to make returns etc) on or before the due date.
(3) In sub-paragraph (2)(c) “filing date” and “penalty date” have the same meaning as in Schedule 55 to FA 2009 (see paragraph 1(4) of that Schedule).
(4) In sub-paragraph (2)(d) “due date” has the same meaning as in Schedule 25 to FA 2021 (see paragraph 2(4) of that Schedule).
(5) The amount of potential lost revenue that is attributable to the sanctionable conduct is—
(a) in a case within sub-paragraph (2)(a), the potential lost revenue in respect of the inaccuracy in question as determined in accordance with paragraphs 5 to 8 of Schedule 24 to FA 2007;
(b) in a case within sub-paragraph (2)(b), the potential lost revenue in respect of the failure as determined in accordance with paragraphs 7 and 11 of Schedule 41 to FA 2008;
(c) in a case within sub-paragraph (2)(c), the amount of the liability to tax which would have been shown in the return in question as determined in accordance with paragraph 24 of Schedule 55 to FA 2009;
(d) in a case within sub-paragraph (2)(d), the amount of the liability to tax which would have been shown in the return in question as determined in accordance with paragraph 11 of Schedule 25 to FA 2021.
(6) In its application for the purposes of sub-paragraph (5)(c), paragraph 24(2) of Schedule 55 to FA 2009 (determination of penalty where no return made) has effect as if references to a penalty were references to a penalty under this Schedule.
(7) In its application for the purposes of sub-paragraph (5)(d), paragraph 11(2) and (3) of Schedule 25 to FA 2021 (determination of penalty where no return made) has effect as if references to a penalty were references to a penalty under this Schedule.

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Source: https://www.legislation.gov.uk/ukpga/2012/14/schedule/38/paragraph/26C (the official version)
Page: https://openlegislation.uk/finance-act-2012/schedule-38/paragraph-26C
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.