# Income Tax (Earnings and Pensions) Act 2003, Paragraph 40E


(1) This paragraph applies if a return under paragraph 40B, or any information accompanying such a return—
(a) is given otherwise than in accordance with paragraph 40D, or
(b) contains a material inaccuracy—
(i) which is careless or deliberate, or
(ii) which is not corrected as required by paragraph 40B(11).
(2) The scheme organiser is liable for a penalty of an amount decided by HMRC.
(3) The penalty must not exceed £5,000.
(4) For the purposes of sub-paragraph (1)(b)(i) an inaccuracy is careless if it is due to a failure by the scheme organiser to take reasonable care.

---
Source: https://www.legislation.gov.uk/ukpga/2003/1/schedule/3/paragraph/40E (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-3/paragraph-40E
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.