Paragraph 26 F1

(1)

This paragraph applies if—

(a)

in complying with the duty under paragraph 22, a person provides inaccurate information, and

(b)

condition A, B or C 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 knows of the inaccuracy at the time the information is provided but does not inform HMRC at that time.

(5)

Condition C is that the person—

(a)

discovers the inaccuracy some time later, and

(b)

fails to take reasonable steps to inform HMRC.

(6)

The person is liable to a penalty not exceeding £3000.

(7)

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

Annotations

F1: Sch. 12 paras. 21-30 and cross-headings inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 2 para. 1