Finance Act 1966

23 (1) If a company fraudulently or negligently—

(a) makes any incorrect return, statement or declaration in connection with any claim for relief under section 84 of the Finance Act 1965 (companies with overseas trading income), or

(b) submits to an inspector or any Commissioners any incorrect accounts in connection with such a claim,

the company shall be liable to a penalty not exceeding the aggregate of fifty pounds and the amount or, in the case of fraud, twice the amount of the difference specified in sub-paragraph (2) below.

(2) The difference is that between—

(a) the amount of the relief obtained on the claim, or which would have been obtainable if the return, statement, declaration or accounts had been correct, and

(b) the amount, if any, of relief which is properly due to the company.

(3) Section 50 of the [1960 c. 44.] Finance Act 1960 (penalty for assisting in making incorrect returns etc.) shall apply in relation to any return, account, statement or declaration made for the purposes of obtaining relief under the said section 84 as it applies to any return, account, statement or declaration made for the purposes of income tax.

(4) Sections 47(3) and 48(3) of the Finance Act 1960 shall apply for the purposes of this paragraph as they apply for the purposes of the said section 47.

(5) Section 58 of the Finance Act 1960 (interest on tax recovered to make good loss due to taxpayer's fault) shall apply in relation to proceedings brought for the recovery of relief under the said section 84 which is or has become excessive, where the bringing of the proceedings is wholly or partly attributable to the fraud, wilful default or neglect of the defendant as it applies in relation to an assessment made for the purpose of making good a loss of tax wholly or partly attributable to the fraud, wilful default or neglect of any person, and subject to any necessary modifications.

(6) The exception in section 30(1) proviso of the [1939 c. 21.] Limitation Act 1939 for proceedings for the recovery of any tax or duty or interest thereon, and any corresponding exceptions in any other enactment forming part of the law of any part of the United Kingdom and relating to the limitation of actions, shall apply in relation to proceedings for the recovery of relief under the said section 84 which is or has become excessive, or of interest thereon.

(7) Regulations under subsection (7) of the said section 84—

(a) may provide that where any relief given under that section is or becomes excessive, the excess may be recovered by being set off against any income tax, profits tax or corpora-tax due to be repaid to the company, or against any relief from any such tax, to which the company is entitled, and

(b) may apply sections 500 to 505 of the [1952 c. 10.] Income Tax Act 1952 and any provisions of Part III of the Finance Act 1960 in relation to penalties under this paragraph and the recovery of relief under the said section 84 subject to such modifications and exceptions as may be prescribed by the regulations.

(8) This paragraph applies in relation to claims made before or after the passing of this Act.