Taxes Management Act 1970

PART X F1 U.K. PENALTIES, ETC.

Textual Amendments

F1 SeeFinance Act 1966 s.27andSch.6 para.23(7)—regulations underFinance Act 1965 s.84(7)may apply any provisions ofFinance Act 1960 Part III (nowTaxes Management Act 1970 Part X)in relation to penalties underpara.23and recovery of relief underFinance Act 1965 s.84 (overspill relief),subject to modifications, etc. For regulations, seePart III Vol.5.).

Modifications etc. (not altering text)

C1 Part X (ss. 93-107) applied (with modifications) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 16(1)(b), 177(4), Sch. 2

C2 Part X (ss 93-107) applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 122(2)(3)

93 Failure to make return for income tax or capital gains tax. [1960 s.46(1), Sch.VI column 1; 1964(M) 7(8); 1965 Sch.X 1(1).] U.K.

(1) If any person has been required by a notice served under or for the purposes of section 8 or [8A or 9 of this Act or any F2 ] of those sections as extended by section 12 of this Actor section[284(4) F3 ] of the principal Act (husband and wifeF4 )) to deliver any return, and he fails to comply with the notice he shall be liable, subject to the provisions of this section—

[(a) to a penalty not exceeding £300, and

(b) if the failure continues after a penalty is imposed under paragraph (a) above, to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under paragraph (a) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed) F5 .] F6 .

[(2) If a failure by a person to comply with a notice such as is referred to in subsection (1) above continues after the end of the year of assessment following that during which it was served then, without prejudice to any penalty under subsection (1) above, he shall be liable to a penalty of an amount not exceeding so much of the tax with which he is charged (whether for one or for more than one year of assessment) in assessments—

(a) based wholly or partly on any income or chargeable gains that ought to have been included in the return required by the notice, and

(b) made after the end of the year next following the year of assessment in which the notice was served,

as is attributable to the income or chargeable gains that ought to have been so included F5 .] F6

M1 (3) Where in any year of assessment any amount was deducted from the said person’s emoluments under section [203 F3 ] of the principal Act (pay as you earn), and that amount exceeds the total amount (if any) charged in any assessments under Schedule E made on him for that year before the end of the year of assessment next following that in which the said notice was served, the amount of excess shall be treated, for the purposes of subsection (2) of this section, as reducing the amount of the tax charged in assessments under Schedule E made on him for the first-mentioned year after the end of the said following year.

M2 (4) [In relation to areturn required for the purposes of section 9 of this Act the reference in subsection (2) above to tax F7 ] does not include any tax not chargeable in the partnership name, and in relation to a person’s failure to deliver any other return it does not include tax assessed in the name of a partnership on so much of the profits or gains assessed as falls to be included in the total income of any other person.

[(5) No penalty shall be imposed under subsection (1) above in respect of a failure at any time after the failure has been remedied F8 .]

M3 (6) Where a person is liableto more than one penalty of an amount determined under subsection (2) above, any assessment taken into account for the purposes of one of those penalties shall be left out of account for the purposes of the other or others.

[(7) If the person on whom a notice is served proves that there was no income or chargeable gain to be included in the return, the penalty under this section shall not exceed £100 F9 .]

(8) references in this section[[1960 s.63(5); 1965 Sch.X 1(1).]] to the amount of tax with which a person is charged for any year of assessment and to assessments made on him include, in the case of a person who has died, references to any amount with which his personal representatives are charged for that year and to assessments made on them.

Textual Amendments

F2 Finance Act 1990 s. 90(3)where a notice to deliver a return was, or falls to be, given after 5 April 1990. Previously

“9 of this Act (or either”.

F3 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

F4 Repealed by Finance Act 1988 (c. 39, SIF 63:1,2) s. 148and Sch. 14 Part VIIIfor 1990-91and subsequent years.

F5 Finance Act 1989 s. 162(2), (3)in relation to any failure to comply with a notice served on or after 6 April 1989. Previously

“(a) to a penalty not exceeding, except in the case mentioned in subsection (2) below, £50, and (b) if the failure continues after it has been declared by the court or Commissioners before whom proceedings for the penalty have been commenced, to a further penalty not exceeding £10 for each day on which the failure so continues”

in subs. (1)and

“(2) If the failure continues after the end of the year of assessment following that during which the notice was served, the penalty under subsection (1)(a) above shall be an amount not exceeding the aggregate of £50 and the total amount of the tax with which the said person is charged (whether for one or for more than one year of assessment) in assessments— (a) based wholly or partly on any income or chargeable gains that ought to have been included in the return required by the notice, and (b) made after the end of the year next following the year of assessment in which the said notice was served.”

in subs. (2).

F6 See Finance Act 1988 (c. 39, SIF 63:1,2) s. 35and Sch. 3 paras. 27and 28—married couples.

F7 Finance Act 1971 ss.37, 38andSch.6 para.89with effect for1973—74et seq.

F8 Finance Act 1989 s. 162(4)in relation to any failure to comply with a notice served on or after 6 April 1989. Previously

“(5) Except in the case mentioned in subsection (2) above, a person shall not be liable to any penalty incurred under this section for a failure to comply with any notice, if the failure is remedied before proceedings for the recovery of the penalty are commenced.”

F9 Finance Act 1989 s. 162(5)in relation to any failure to comply with a notice served on or after 6 April 1989. Previously

“(7) If the defendant (or, in Scotland, the defender) in proceedings under this section proves that there was no income and no chargeable gains to be included in the return, the penalty shall not exceed £5.”

Marginal Citations

M1 1960

s.46(3).

M2 1960 s.46(4).

M3 1960 s.46(6); 1965 Sch.X 1(1).

[94 F10 Failure to make return for corporation tax. U.K.

(1) If a company has been required by a notice served under section 11 of this Act (or under that section as extended by section 12 of this Act) to deliver a return for any period (in this section referred to as “the return period”) and the company fails to make proper delivery of the return, then, subject to subsections (3) and (5) below, the company shall be liable to a penalty which,—

(a) if the return is delivered before the expiry of the period of three months beginning on the day following the final day for the delivery of the return, shall be £100; and

(b) in any other case, shall be £200.

(2) In relation to a return required by such a notice as is referred to in subsection (1) above,—

(a) any reference in this section (however expressed) to the delivery of the return is a reference to its delivery together with the accompanying accounts, statements and reports referred to in section 11(1) of this Act; and

(b) any reference in this section to making proper delivery of the return is a reference to the delivery of the return on or before the day which (in accordance with section 11(4) of this Act) is the final day for the delivery of the return.

(3) In a case where—

(a) a company is required to deliver a return for a return period, and

(b) the return period is a period for which, under the M4 Companies Act 1985, the company is required to deliver accounts to the Registrar of Companies,

the company shall not be liable to a penalty under subsection (1) above by reason of a failure to make proper delivery of the return if the return is delivered on or before the day which is the last day for the delivery to the Registrar of the accounts referred to in paragraph (b) above.

(4) In the application of this section to a company registered in Northern Ireland, the reference in subsection (3) above to the Companies Act 1985 shall be construed as a reference to the M5 Companies (Northern Ireland) Order 1986 and references to the Registrar of Companies shall be construed accordingly.

(5) In any case where—

(a) a company is within the charge to corporation tax for three consecutive accounting periods, each of which is a return period, and

(b) at no time between the beginning of the first of those periods and the end of the last is the company outside the charge to corporation tax, and

(c) the company fails to make proper delivery of the return for the third of those periods, and

(d) the company was liable to a penalty under this section in respect of each of the first two of those periods,

subsection (1) above shall have effect in relation to the failure referred to in paragraph (c) above as if for “£100” there were substituted “£500” and for “£200” there were substituted “£1,000”.

(6) If a company which has been required as mentioned in subsection (1) above to deliver a return fails to deliver the return before the expiry of the period of eighteen months beginning on the day following the last day of the return period, then (without prejudice to any penalty under the preceding provisions of this section) the company shall be liable to a penalty which,—

(a) if the return is delivered before the expiry of the period of two years beginning on the day following that last day, shall be 10 per cent. of the tax unpaid at the end of the eighteen months referred to above; and

(b) in any other case, shall be 20 per cent. of the tax unpaid at the end of those eighteen months.

(7) In subsection (6) above “the tax unpaid” at any time means the amount by which the corporation tax chargeable on the profits of the company for the return period which then remains unpaid exceeds any income tax borne by deduction from payments included in those profits.

(8) In determining for the purposes of subsection (7) above how much of the corporation tax chargeable on the profits of a company for the return period remains unpaid at any time, no account shall be taken of the discharge of any liability for that tax which, pursuant to a claim under subsection (3) of [F11 section 239(3) of the principal Act]], is attributable to an amount of surplus advance corporation tax, as defined in that subsection, unless it is a surplus for an accounting period ending not later than two years after the end of the return period.

Textual Amendments

F10 S. 94 substituted (23.7.1987 with respect to failures to deliver returns required by notices served under s. 11 after the day to be appointed) by Finance (No. 2) Act 1987 (c. 83), s. 83

F11 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 29 para 10(7)

Marginal Citations

M4 1985 c. 6.

M5 S.I. 1986/1032 (N.I. 6).

95 Incorrect return or accounts for income tax or capital gains tax. [1960 s.47(1), Sch.VI; 1964(M) s.7(8); 1965 Sch.X 1(1).] U.K.

(1) Where a person fraudulently or negligently—

(a) delivers any incorrect return of a kind mentioned in section 8 or [8A or 9 of this Act (or any F12 ] of those sections as extended by section 12 of this Actor section [284(4) F13 ]of the principal Act (husband and wifeF14 )), or

(b) makes any incorrect return, statement, or declaration in connection with any claim for any allowance, deduction or relief in respect of income tax or capital gains tax, or

(c) submits to an inspector or the Board or any Commissioners any incorrect accounts in connection with the ascertainment of his liability to income tax or capital gains tax,

he shall be liable to a penalty not exceeding [the amount of the difference specified in subsection (2) below F15 .] F16

F17 M6 (2) The difference is thatbetween—

(a) the amount of income tax and capital gains tax payable for the relevant years of assessment by the said person (including any amount of income tax deducted at source and not repayable F18 ), and

(b) the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by him had been correct F17 .

M7 (3) The relevant years of assessment for the purposes of this section are, in relation to anything delivered, made or submitted in any year of assessment, that, the next following, and any preceding year of assessment; and the references in subsection (2) to the amount of income tax payable [do not, in relation to anything done in connection with a partnership F19 ], include any income tax not chargeable in the partnership name F20 .

Textual Amendments

F12 Finance Act 1990 s. 90(4)where a notice to deliver a return was, or falls to be, given after 5 April 1990. Previously

“9 of this Act (or either”.

F13 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

F14 Repealed by Finance Act 1988 (c. 39, SIF 63:1,2) s. 148and Sch. 14 Part VIIIfor 1990-91and subsequent years.

F15 Finance Act 1989 s. 163(1)(a)in relation to returns, statements, declarations or accounts delivered, made or submitted on or after 27 July 1989. Previously

“the aggregate of—(i) £50, and (ii) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (2) below.”

F16 See S.I. 1986 No. 1948 (in Part III Vol. 5) regn. 11(3)and S.I. 1989 No. 469 regn. 9—application of s. 95to individual applications to subscribe to personal equity plans.

F17 See Finance Act 1988 (c. 39, SIF 63:1,2) s. 35and Sch. 3 paras. 27and28—married couples.

F18 See S.I. 1986 No. 1948 (in Part III Vol. 5) regn. 23(4)—amounts deducted under S.I. 1986 No. 1948 regn. 23(3)to be treated as amounts of income tax deducted at source and not repayable within the meaning of and for the purposes of s. 95(2)(a)

F19 Finance Act 1971 ss.37, 38andSch.6 para.90for1973—74et seq.

F20 See—Finance Act 1966 s.27andSch.6 para.23(4)—ss.95and97applied for purposes ofFinance Act 1966 Sch.6 para.23 (transitional relief for companies with overseas trading income).Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 14 para. 7(3)(d)—application of s. 95to sums claimed under s. 266(5)(b)to which the claimant was not entitled.Finance Act 1989 s. 57(3)—application of s. 95(3)to medical insurance relief.

Modifications etc. (not altering text)

C3 S. 95 extended by Finance Act 1991 (c. 31, SIF 63:1), s. 33(3)(d)

C4 S. 95 modified by 1988 c. 1, Sch. 6A Pt. II para. 8(4) (as inserted (27.7.1993 with effect for the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 73, Sch. 4 paras.7, 8)

Marginal Citations

M6 1960 s.48(1); 1965 Sch.X 1(1).

M7 1960 s.48(2); 1965 Sch.X 1(1).

96 Incorrect return or accounts for corporation tax. [1966 Sch.VI 4.] U.K.

(1) Where a company fraudulently or negligently—

(a) delivers any incorrect return under section 11 of this Act (or under that section as extended by section 12 of this Act), or

(b) makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief in respect of corporation tax, or

(c) submits to an inspector or any Commissioners any incorrect accounts in connection with the ascertainment of the company’s liability to corporation tax,

the company shall be liable to a penalty not exceeding [the amount of the difference specified in subsection (2) below F21 .]

(2) The difference is that between—

(a) the amount of corporation tax payable by the said company for the accounting period or accounting periods comprising the period to which the return, statement, declaration or accounts relate, and

(b) the amount which would have been the amount so payable if the return, statement, declaration or accounts had been correct. F22

Textual Amendments

F21 Finance Act 1989 s. 163(1)(b)in relation to returns, statements, declarations or accounts delivered, made or submitted on or after 27 July 1989. Previously

“the aggregate of—(i) £50, and (ii) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (2) below.”

F22 See also Finance Act 1988 (c. 39, SIF 63:1,2) ss. 131-132—tax payable by migrating companies.

97 Incorrect return or accounts: supplemental. [1960 ss.47(3), 48(3); 1965 Sch.X 1(1); 1966 Sch.VI 4(3).] U.K.

(1) Where any such return, statement, declaration or accounts as are mentioned in section 95 and 96 above were made or submitted by any person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that they were incorrect, then, unless the error is remedied without unreasonable delay, the return, statement, declaration or accounts shall be treated for the purposes of those sections as having been negligently made or submitted by him. F23

(2) For the purposes of sections 95 and 96 above, any accounts submitted on behalf of any person shall be deemed to have been submitted by him unless he proves that they were submitted without his consent or connivance F24 . F25

Textual Amendments

F23 See S.I. 1986 No. 1948 (in Part III Vol. 5) regn. 33(4)and S.I. 1989 No. 469 regn. 28(4)—s. 97(1)to apply to S.I. 1986 No. 1948(personal equity plan regulations) with certain modifications.

F24 See also Finance Act 1988 (c. 39, SIF 63:1,2) ss. 131-132—tax payable by migrating companies.

F25 See Finance Act 1966 s. 27and Sch. 6 para. 23(4)—ss. 95and 97applied for purposes of Finance Act 1966 Sch. 6 para. 23 (transitional relief for companies with overseas trading income).

97A [Two or more tax-geared penalties in respect of the same tax. U.K.

Where two or more penalties—

(a) are incurred by any person and fall to be determined by reference to any income tax or capital gains tax with which he is chargeable for a year of assessment; or

(b) are incurred by any company and fall to be determined by reference to any corporation tax with which it is chargeable for an accounting period,

each penalty after the first shall be so reduced that the aggregate amount of the penalties, so far as determined by reference to any particular part of the tax, does not exceed whichever is or, but for this section, would be the greater or greatest of them, so far as so determined F26 .]

Textual Amendments

F26 Finance Act 1988 (c. 39, SIF 63:1,2) s. 129—s. 97A(a)to have effect for the year 1988-89 and subsequent years, and s. 97A(b) to have effect for accounting periods ending after 31st March 1989.

98 Special returns, etc. [1960 s.46(1).] U.K.

(1) [Subject to [the provisions of this section and F27 ] section 98A below, where F28 ] any person—

(a) has been required, by a notice served under or for the purposes of any of the provisions specified in the first column of theTable below, to deliver any return or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice, or

(b) fails to furnish any information, give any certificate or produce any document or record in accordance with any of the provisions specified in the second column of the Table below,

he shall be liable, subject to [subsections (3) and (4) below—

(i) to a penalty not exceeding £300, and

(ii) if the failure continues after a penalty is imposed under paragraph (i) above, to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under paragraph (i) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed) F28 ].

M8 (2) [Subject to section 98A below, where F29 ] a person fraudulently or negligently furnishes, gives, produces or makes any incorrect information, certificate, document, record or declaration of a kind mentioned in any of the provisions specified in either column of the Table below, he shall be liable to a penalty not exceeding [£3000 F29 ].

[(3) No penalty shall be imposed under subsection (1) above in respect of a failure within paragraph (a) of that subsection at any time after the failure has been remedied.

(4) No penalty shall be imposed under paragraph (ii) of subsection (1) above in respect of a failure within paragraph (b) of that subsection at any time after the failure has been remedied F30 .] F31

[(5) In the case of a failure to comply with section 765A(2)(a) or (b) of the principal Act, subsection (1) above shall have effect as if for “£300” there were substituted “£3000” and as if for “£60” there were substituted “£600”F32 .]

TABLE

1.	2.
Part III of this Act,except sections 16and 24(2) F33	In the principal Act—
Section 51 of this Act	[section 38(5)F34 ]
In the principal Act—	section 41(2);
section 38(5) F34 ;	[section 42 F34 ]
section 42 F34 ;	section 124(3);
section 181(1);	section 136(6);
regulations under section 202;	section 139(5)or (6); F35
section 217;	section 148(7);
section 226(3) and (4);	section 180(1);
section 234(7)(b), (8) and (9);	regulations under section 202;
section 250(6) and (7);	regulations under section 203;
section 272(7);	section 216;
section 310(4) and (5);	section 226(1) and (2);
[regulations under section 326C F36 ]	section 234(5), (6) and (7)(a);
regulations under section 333;	section 250(1) to (5);
regulations under section 476(1);	section 310(1), (2) and (3);
[regulations under section 477A F37 ]	section 313(5);
section 481(5)(k) F38 ]	[Regulations under section 326C F36 ]
section 482(3);	Regulations under section 333;
regulations under section 482(11);	section 350(1);
section 483;	section 375(5);
Regulations under section 555(7);	regulations under section 476(1);
section 561(8);	[regulations under section 477A F37 ;]
section 588(7);	[section 482(2) F39 ]
regulations under section 602;	regulations under section 482(11);
section 605(1),(2),(3)(b) and (4);	section 552;
regulations under section 612(3);	regulations under section 555(7);
regulations under section 639;	regulations under section 566(1) or (2);
section 652;	section 577(4);
section 669;	section 588(6);
section 680;	regulations under section 602;
section 700(4);	section 605(3)(a);
section 708;	regulations under section 612(3);
section 728;	regulations under section 639;
section 729(11);	[section 765A(2)(a) F40 ;]
section 730(8);	section 772(6);
section 737(8);	[F41 Schedule 3, paragraph 6C];
section 745(1);	Schedule 13;
section 755;	regulations under paragraph 7 of Schedule 14;
[section 765A(2)(b) F40 ;]	Schedule 15, paragraph 14(4);
section 768(9);	Schedule 16;
section 772(1) and (3);	Schedule 22, paragraph 2.
section 774(5);	Regulations under section [F42 151 of the 1992 Act].
section 778;	[Sections 23(2), 48 and 49(2) of the Capital Allowances Act 1990 F43 .]
section 815;	Regulations 16 and 17 of the Income Tax (Interest Relief) Regulations 1982.
Schedule 3, paragraph 13(1);	Paragraph 15(3) of Schedule 14 to the Finance Act 1984.
Schedule 5, paragraph 10;	Paragraph 10 of Schedule 16 to the Finance Act 1986 F44
Schedule 9, [paragraph 6 F45 ];	[Section 85(1) and (2) of the Finance Act 1988 F46 ]
Schedule 15 paragraph 14(5);	[Regulations under section 57 of the Finance Act 1989 F47 .]
Schedule 19,paragraph 17 F48	F49 . . .
Schedule 22, paragraph 4.	[F50 Regulations under section 33 of the Finance Act 1991][F51 11 to 14 of Schedule 5 to the 1992 Act].
Section 32 of the Finance Act 1973.
Paragraph 2 of Schedule 15 to the Finance Act 1973.
Regulations under section [F52 151 of the 1992 Act].
Paragraph [F53 2(9) of Schedule 1 to the 1992 Act].
[Sections 23(4) and 49(4) of the Capital Allowances Act 1990 F54 ]
Section [F55 98 of the 1992 Act].
Paragraph 15(1) of Schedule 14 to the Finance Act 1984.
Paragraph 6(1) of Schedule 22 to the Finance Act 1985.
[F56 Section 79(6) of the 1992 Act].
[Regulations under section 57 of the Finance Act 1989 F57 ]
[Section 73 of the Finance Act 1989 F58 ]
[Paragraphs 2 to 4 of Schedule 12 to the Finance Act 1989 F47 ]
[F59 235 of the 1992 Act][F50 Regulations under section 33 of the Finance Act 1991][F60 10 of Schedule 5 to the 1992 Act] .
	[F61 Section 28(2) of the Finance (No.2) Act 1992.]

The references in this Table to regulations under section 602 have effect only for the purpose of giving effect to any provision mentioned in paragraphs (a) and (b) of subsection (2) of that section F62 ]

Textual Amendments

F27 Finance Act 1990 s. 68(3)(a)for transactions carried out on or after 1 July 1990.

F28 Finance Act 1989 s. 164(2), (7)in relation to failures beginning, or information etc. furnished, on or after 27 July 1989. Previously

“Where”

and

“subsection (3) below—(i) to a penalty not exceeding £50, and (ii) if the failure continues after it has been declared by the Court, or Commissioners before whom proceedings for the penalty have been commenced, to a further penalty not exceeding £10 for each day on which the failure so continues.”

respectively.

F29 Finance Act 1989 s. 164(3), (7)in relation to failures beginning, or information etc. furnished, on or after 27 July 1989. Previously

“Where”

and

“£250, or, in the case of fraud, £500”

respectively.

F30 Finance Act 1989 s. 164(4), (7)in relation to failures beginning, or information etc. furnished, on or after 27 July 1989. Previously

“A person shall not be liable to any penalty incurred under this section for a failure to comply with any notice, if the failure is remedied before proceedings for the recovery of the penalty are commenced”.

F31 See—Taxes Management Act 1970 (c. 9, SIF 63:1) s. 53(1)—s. 98(3)not applicable where penalty under s. 51 or 52 awarded summarily.Taxes Management Act 1970 (c. 9, SIF 63:1) s. 119and Sch. 4 para. 10—application of s. 98 in relation to repealed provisions.Oil Taxation Act 1975 s. 1and Sch. 2 para. 1(1)—Oil Taxation Acts—regarding modifications relating to petroleum revenue tax and supplementary petroleum tax.Finance Act 1981 s. 134and Sch. 17 para. 18—application of this section to the special tax on banking deposits.Social Security Act 1975 (c. 14) Sch. 1 para. 5(2)—s. 98applied in relation to regulations made under Social Security Act 1975 Sch. 1 para. 5(1)as they apply in relation to regulations made under Income and Corporation Taxes Act 1970 s. 204 (now Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s. 203) Social Security (Northern Ireland) Act 1975 (c. 15) Sch. 1 para. 5(2)—s. 98applied in relation to regulations made under Social Security (Northern Ireland) Act 1975 Sch. 1 para. 5(1)as they apply in relation to regulations made under Income and Corporation Taxes Act 1970 s. 204 (now Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s. 203).

F32 Finance Act 1990 s. 68(3)(b)for transactions carried out on or after 1 July 1990.

F33 Words repealed by Finance Act 1989 ss. 164(5)(a)and 187and Sch. 17 Part VIIIin relation to any failure to comply with a notice etc. on or after 27 July 1989.

F34 Entries transferred to column 1 from column 2 by Finance Act 1989 s. 164(5)(b)in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F35 Repealed by Finance Act 1988 s. 148and Sch. 14 Part VIin relation to acquisitions on or after 26 October 1987.

F36 Finance Act 1990 s. 28(2).

F37 Finance Act 1990 s. 30and Sch. 5 para. 15.

F38 Words repealed by Finance Act 1989 ss. 164(5)(c)and 187and Sch. 17 Part VIIIin relation to any failure to comply with a notice etc. on or after 27 July 1989.

F39 Finance Act 1989 s. 164(5)(c)in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F40 Finance Act 1990 s. 68(3)(c), (d)respectively.

F41 Words in s. 98 Table substituted (16.7.1992 with effect in relation to transactions effected on or after 1.10.1992) by Finance (No. 2) Act 1992 (c. 48), s. 63, Sch. 11 paras.4, 6.

F42 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(b)(i) (with ss. 60, 101(1), 171, 201(3)).

F43 Capital Allowances Act 1990 (c. 1, SIF 63:1) s. 164and Sch. 1 para. 1(3).Previously

“67(2) of, and paragraph 4(1) of Schedule 12 to, the Finance Act 1980”.

F44 Repealed by Capital Allowances Act 1990 (c. 1, SIF 63:1) s. 164(4)and Sch. 2See 1989 edition for these provisions.

F45 Finance Act 1990 s. 89and Sch. 14 para. 15 (correction of errors)—deemed to have been made by the Taxes Act 1988.Previously

“paragraphs 6 and 25”.

F46 Finance Act 1988 (c. 39, SIF 63:1,2) s. 85(3).

F47 Finance Act 1989 s. 107and Sch. 12 para. 5.

F48 Repealed by Finance Act 1989 s. 187and Sch. 17 Part Von and after 27 July 1989.

F49 Words in s. 98 Table repealed (16.7.1992 with application in relation to claims made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 28, 82, Sch. 18 Pt.VII.

F50 Words in s. 98 Table added (25.7.1991) by Finance Act 1991 (c. 31, SIF 63:1), s. 33(2)

F51 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(b)(ii) (with ss. 60, 101(1), 171, 201(3)).

F52 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(i) (with ss. 60, 101(1), 171, 201(3)).

F53 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(ii) (with ss. 60, 101(1), 171, 201(3)).

F54 Capital Allowances Act 1990 (c. 1, SIF 63:1) s. 164and Sch. 1 para. 1(2).Previously

“sections 67(4) of, and paragraph 4(3) of Schedule 12 to, the Finance Act 1980”.

F55 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(iii) (with ss. 60, 101(1), 171, 201(3)).

F56 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10(a)(iv) (with ss. 60, 101(1), 171, 201(3)).

F57 Finance Act 1989 s. 57(2).

F58 Finance Act 1989 s. 73(9).

F59 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(v) (with ss. 60, 101(1), 171, 201(3)).

F60 Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(vi) (with ss. 60, 101(1), 171, 201(3)).

F61 Entry in s. 98 Table inserted (16.7.1992 with application in relation to claims made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 28(4)(6).

F62 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 9.See 1987 edition for previous table and see Finance Act 1988 Sch. 14 Part VIfor repeal of reference to Schedule 12to the Finance Act 1972in that table in connection with acquisitions on or after 26 October 1987.

Modifications etc. (not altering text)

C5 S. 98 applied (E.W.S.)(1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 173(4), Sch. 1, para. 6(7)

S. 98 applied (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 6(7)

C6 S. 98 amended (27.7.1993) by 1993 c. 34, s. 187(8)

C7 S. 98 applied (with modifications) (1.10.1993) by S.I. 1993/2004, reg. 11(12)(13)

Marginal Citations

M8 1960

s. 47(2).

98A [Special penalties in the case of certain returns. U.K.

(1) Regulations under section 203(2) (PAYE) or 566(1) (sub-contractors) of the principal Act may provide that this section shall apply in relation to any specified provision of the regulations.

(2) Where this section applies in relation to a provision of regulations, any person who fails to make a return in accordance with the provision shall be liable—

(a) to a penalty or penalties of the relevant monthly amount for each month (or part of a month) during which the failure continues, but excluding any month after the twelfth or for which a penalty under this paragraph has already been imposed F63 , and

(b) if the failure continues beyond twelve months, without prejudice to any penalty under paragraph (a) above, to a penalty not exceeding so much of the amount payable by him in accordance with the regulations for the year of assessment to which the return relates as remained unpaid at the end of 19th April after the end of that year.

(3) For the purposes of subsection (2)(a) above, the relevant monthly amount in the case of a failure to make a return—

(a) where the number of persons in respect of whom particulars should be included in the return is fifty or less, is £100, and

(b) where the number is greater than fifty, is £100 for each fifty such persons and an additional £100 where that number is not a multiple of fifty.

(4) Where this section applies in relation to a provision of regulations, any person who fraudulently or negligently makes an incorrect return of a kind mentioned in the provision shall be liable to a penalty not exceeding the difference between—

(a) the amount payable by him in accordance with the regulations for the year of assessment to which the return relates, and

(b) the amount which would have been so payable if the return had been correct F64 .] F65 F66

Textual Amendments

F63 See Finance Act 1989 s. 165(2)for change to subs. (2)(a) in the case of a failure to make a return before a day to be appointed.

F64 Finance Act 1989 s. 165(1).

F65 See—S.I. 1973 No. 334, regn. 30(8) (in Part III Vol. 5)—end of year return by employer; and regn. 51(9)—alternative procedure for direct collection.S.I. 1975 No. 1960, regn. 10 (in Part III Vol. 5)—end of year return by contractor.

F66 S. 98A,as modified by para. 5A of Sch. 1 of Social Security Act 1975 (c. 14)as inserted by Social Security Act 1990 (c. 27) Sch. 5),is applied to returns of contributions under regns. 30(7)and 51(10)of the Social Security (Contributions) Regns. 1979 (S.I. 1975 No. 591)(as inserted byS.I. 1990 No. 1935).For Northern Ireland see para. 5A of Sch. 1 Social Security (Northern Ireland) Act 1975, art. 19(5)and Sch. 5 Social Security (Northern Ireland) Order 1990and S.R. 1990 No. 350).

Modifications etc. (not altering text)

C8 S. 98A power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(9)-(12)

S. 98A power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(9)-(12)

S. 98A(2)(a) restricted (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(3)

S. 98A(2)(b)(4) modified (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(4)

C9 S. 98A applied (6.4.1993) by S.I. 1993/743, reg. 11(11)

C10 S. 98A applied (6.4.1993) by S.I. 1993/744, reg. 43(12)

C11 S. 98A applied (6.4.1993) by S.I. 1993/744, reg. 104(16)

98B European Economic Interest Groupings. Official Journal of the European Communities No. L199/1. U.K.

(1) In this section “grouping” means a European Economic Interest Grouping formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25th July 1985, whether registered in Great Britain, in Northern Ireland or elsewhere.

(2) Subject to subsections (3) and (4) below, where a grouping or member of a grouping required by notice given under section 12A above to deliver a return or other document fails to comply with the notice, the grouping or member shall be liable—

(a) to a penalty not exceeding £300; and

(b) if the failure continues after a penalty is imposed under paragraph (a) above, to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under paragraph (a) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).

(3) No penalty shall be imposed under subsection (2) above in respect of a failure at any time after the failure has been remedied.

(4) If a grouping to which, or member to whom, a notice is given proves that there was no income or chargeable gain to be included in the return, the penalty under subsection (2) above shall not exceed £100.

(5) Where a grouping or member fraudulently or negligently delivers an incorrect return, accounts or statement, or makes an incorrect declaration in a return delivered, under section 12A above, the grouping or member shall be liable to a penalty not exceeding £3000 multiplied by the number of members of the grouping at the time of delivery F67 .]

Textual Amendments

F67 Finance Act 1990 s. 69and Sch. 11 para. 3(1)on and after 1 July 1989.

99 [Assisting in preparation of incorrect return, etc. U.K.

Any person who assists in or induces the preparation or delivery of any information, return, accounts or other document which—

(a) he knows will be, or is or are likely to be, used for any purpose of tax, and

(b) he knows to be incorrect,

shall be liable to a penalty not exceeding £3,000 F68 .] F69

Textual Amendments

F68 Finance Act 1989 s. 166in relation to assistance and inducements occuring on or after 27 July 1989. Previously

“99. Any person who assists in or induces the making or delivery for any purposes of tax of any return or accounts which he knows to be incorrect shall be liable to a penalty not exceeding £500(a).”

(a)

SeeFinance Act 1966 s.27andSch.6 para.23(3)—s.99applied to returns, etc., underFinance Act 1965 s.84 (transitional relief for companies with overseas trading income).

F69 SeeFinance Act 1981 s.134andSch.17 para.18—application to the special tax on banking deposits.

[99A F70 Certificates of non-liability to income tax. U.K.

If a person who gives a certificate of non-liability to income tax in pursuance of regulations under section 477A of the principal Act (building societies) or section 480B of that Act (deposit-takers)—

(a) gives the certificate fraudulently or negligently, or

(b) fails to comply with any undertaking contained in the certificate in pursuance of the regulations,

he shall be liable to a penalty not exceeding £3,000.]

Textual Amendments

F70 S. 99A inserted (25.7.1991) by Finance Act 1991 (c. 31, SIF 63:1), s. 82

100 [Determination of penalties by officer of the Board. U.K.

(1) Subject to subsection (2) below and except where proceedings for a penalty have been instituted under section 100D below or a penalty has been imposed by the Commissioners under section 53 of this Act, an officer of the Board authorised by the Board for the purposes of this section may make a determination imposing a penalty under any provision of the Taxes Acts and setting it at such amount as, in his opinion, is correct or appropriate.

(2) Subsection (1) above does not apply where the penalty is a penalty under—

(a) section 93(1) above as it has effect before the amendments made by section 162 of the Finance Act 1989 or section 93(1)(a) above as it has effect after those amendments,

(b) section 94(1) above as it has effect before the substitution made by section 83 of the Finance (No. 2) Act 1987,

(c) section 98(1) above as it has effect before the amendments made by section 164 of the Finance Act 1989 or section 98(1)(i) above as it has effect after those amendments, or

(d) paragraph (a)(i) of section 98A(2) above as it has effect by virtue of section 165(2) of the Finance Act 1989, [or

(e) section 98B(2)(a) above F71 ]

(3) Notice of a determination of a penalty under this section shall be served on the person liable to the penalty and shall state the date on which it is issued and the time within such an appeal against the determination may be made.

(4) After the notice of a determination under this section has been served the determination shall not be altered except in accordance with this section or on appeal.

(5) If it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount of a penalty determined under this section is or has become insufficient the officer may make a determination in a further amount so that the penalty is set at the amount which, in his opinion, is correct or appropriate.

(6) In any case where—

(a) a determination under this section is of a penalty under section 94(6) above, and

(b) after the determination has been made it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount which was taken into account as the relevant amount of tax is or has become excessive,

the determination shall be revised so that the penalty is set at the amount which is correct; and, where more than the correct amount has already been paid, the appropriate amount shall be repaid.

Textual Amendments

F71 Finance Act 1990 s. 69and Sch. 11 para. 3(1)on and after 1 July 1989.

Modifications etc. (not altering text)

C12 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

S. 100 restricted (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(4)(b)

100A Provisions supplementary to section 100. U.K.

(1) Where a person who has incurred a penalty has died, a determination under section 100 above which could have been made in relation to him may be made in relation to his personal representatives, and any penalty imposed on personal representatives by virtue of this subsection shall be a debt due from and payable out of his estate.

(2) A penalty determined under section 100 above shall be due and payble at the end of the period of thirty days beginning with the date of the issue of the notice of the determination.

(3) A penalty determined under section 100 above shall for all purposes be treated as if it were charged in an assessment and due and payable.

Modifications etc. (not altering text)

C13 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992, ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

100B Appeals against penalty determinations. U.K.

(1) An appeal may be brought against the determination of a penalty under section 100 above and, subject to the following provisions of this section, the provisions of this Act relating to appeals shall have effect in relation to an appeal against such a determination as they have effect in relation to an appeal against an assessment to tax.

(2) On an appeal against the determination of a penalty under section 100 above section 50(6) to (8) of this Act shall not apply but—

(a) in the case of a penalty which is required to be of a particular amount, the Commissioners may—

(i) if it appears to them that no penalty has been incurred, set the determination aside,

(ii) if the amount determined appears to them to be correct, confirm the determination, or

(iii) if the amount determined appears to them to be incorrect, increase or reduce it to the correct amount.

(b) in the case of any other penalty, the Commissioners may—

(i) if it appears to them that no penalty has been incurred, set the determination aside,

(ii) if the amount determined appears to them to be appropriate, confirm the determination,

(iii) if the amount determined appears to them to be excessive, reduce it to such other amount (including nil) as they consider appropriate, or

(iv) if the amount determined appears to them to be insufficient, increase it to such amount not exceeding the permitted maximum as they consider appropriate.

(3) Without prejudice to section 56 of this Act, an appeal from a decision of the Commissioners against the amount of a penalty which has been determined under section 100 above or this section shall lie, at the instance of the person liable to the penalty, to the High Court or, in Scotland to the Court of Session as the Court of Exchequer in Scotland; and on that appeal the court shall have the like jurisdiction as is conferred on the Commissioners by virtue of this section.

Modifications etc. (not altering text)

C14 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

100C Penalty proceedings before Commissioners. U.K.

(1) An officer of the Board authorised by the Board for the purposes of this section may commence proceedings before the General or Special Commisioners for any penalty to which subsection (1) of section 100 above does not apply by virtue of subsection (2) of that section.

(2) Proceedings under this section shall be by way of information in writing, made to the Commissioners, and upon summons issued by them to the defendant (or defender) to appear before them at a time and place stated in the summons; and they shall hear and decide each case in a summary way.

(3) Any penalty determined by the Commissioners in proceedings under this section shall for all purposes be treated as if it were tax charged in an assessment and due and payable.

(4) An appeal against the determination of a penalty in proceedings under this section shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland—

(a) by any party on a question of law, and

(b) by the defendant (or, in Scotland, the defender) against the amount of the penalty.

(5) On any such appeal the court may—

(a) if it appears that no penalty has been incurred, set the determination aside,

(b) if the amount determined appears to be appropriate, confirm the determination,

(c) if the amount determined appears to be excessive, reduce it to such other amount (including nil) as the court considers appropriate, or

(d) if the amount determined appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the court considers appropriate.

Modifications etc. (not altering text)

C15 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

100D Penalty proceedings before court. U.K.

(1) Where in the opinion of the Board the liability of any person for a penalty arises by reason of the fraud of that person or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland.

(2) Proceedings under this section which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted—

(a) in England and Wales, in the name of the Attorney General,

(b) in Scotland, in the name of the Lord Advocate, and

(c) in Northern Ireland, in the name of the Attorney General for Northern Ireland.

(3) Any proceedings under this section instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 and any such proceedings instituted in Northern Ireland shall be deemed to be civil proceedings within the meaning of that Part of that Act as for the time being in force in Northern Ireland.

(4) If in proceedings under this section the court does not find that fraud is proved but consider that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Board as to fraud, the penalty would not have been a matter for the court F72 .]

Textual Amendments

F72 Finance Act 1989 s. 167.Previously

“100.—(1)Except as otherwise provided in this section, no proceedings shall be commenced against any person for the recovery of any penalty under the Taxes Acts except by order of the Board(a). (2) Any such proceedings which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted in the name of an officer, or—(a) in England and Wales, in the name of the Attorney General,(b) in Scotland, in the name of the Lord Advocate, and(c) in Northern Ireland, in the name of the Attorney General for Northern Ireland. (3)....(b) any such proceedings may, except as otherwise provided in the Taxes Acts, be commenced either before the General or(a) Special Commissioners, or (a) in England, Wales or Northern Ireland, in the High Court, (b) in Scotland, in the Court of Session as the Court of Exchequer in Scotland,and any proceedings commenced as mentioned in paragraph (a) of this subsection shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 or, as the case may be, that Part as for the time being in force in Northern Ireland.(4)....(b) the inspector may, without an order of the Board, commence before the General Commissioners (or, in Northern Ireland, the Special Commissioners)(c) proceedings for a penalty incurred by any person under section 93(1) or section 98(1) of this Act for a failure to deliver, furnish or produce anything to the inspector; but in any proceedings so commenced the Commissioners shall not in any case award, in respect of the penalty under paragraph (a) of the said section 93(1), a sum exceeding £50(b).(5) Where the person who has incurred any penalty has died, any proceedings under this section which have been or could have been commenced against him may be continued or commenced against his personal representatives, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his estate; but nothing in this subsection shall extend the time for commencing proceedings against personal representatives.(6) Where any proceedings under this section are brought before any Commissioners, an appeal shall lie to the High Court(d) or, in Scotland, the Court of Session as the Court of Exchequer in Scotland, from their decision—(a) by any party, on a question of law, and(b) by the defendant (or, in Scotland, the defender) against the amount of any penalty awarded,and on any appeal under paragraph (b) above the court may either confirm the decision or reduce or increase the sum awarded.(7) Proceedings under this section before any Commissioners shall be by way of information in writing, made to them, and upon summons issued by them to the defendant (or defender) to appear before them at a time and place stated in the summons, and they shall hear and determine each case in a summary way; and any penalty awarded by them in such proceedings shall for all purposes be treated as if it were tax charged in an assessment and due and payable.(8) The Commissioners or the court before whom any proceedings for a penalty of a fixed amount are brought under this section may, if they think fit, give judgment for a less amount.(9) [The Secretary of State(e)] may, if he thinks fit, appoint some other person to act instead of the Attorney General for Northern Ireland in relation to any matters to which this section relates, and in that case the reference in this section to the Attorney General for Northern Ireland shall be construed as a reference to the person so appointed(f)

(g).[(10)—A development land tax provision added byDevelopment Land Tax Act 1976 (c. 24) Sch.8 para.26. Development Land Tax Act 1976 repealed byFinance Act 1985 s.98(6)andSch.27 Part X.]”

(a)

SeeFinance Act 1966 s.27andSch.6 para.23(7)andS.I. 1966 No.1191 regn.4(2) (inPart III Vol.5)—application of this subsection to proceedings for penalties for fraudulent or negligent claims underFinance Act 1965 s.84 (transitional relief for companies with overseas trading income).

(b)

Words omitted relate to development land tax. Development Land Tax Act 1976 repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

(c)

Repealed by Finance Act 1988 (c. 39, SIF 63:1,2) s. 135and s. 148and Sch. 14 Part IXfrom 3 April 1989—commencement order S.I. 1989 No. 473 (in Part III Vol. 5).

(d)

SeeR.S.C. Ord.91, (S.I. 1965 No. 1776under

“Appeals tribunals Supreme Court, Rules of”

inPart III Vol.5) r. 5as to procedure in the High Court in England and Wales.

(e)Northern Ireland Constitution Act 1973 (c. 36) s.40andSch.5 para.4(1).

(f)

SeeTaxes Management Act 1970 (c. 9, SIF 63:1,2) s.45(5)—two or more Special Commissioners to be a quorum for proceedings unders.100.

(g)

See Finance Act 1988 (c. 39, SIF 63:1,2) Sch. 5 para. 10(5)—s. 100not to apply to certain penalties on underwriters' agents

Modifications etc. (not altering text)

C16 Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

101 Evidence of profits for purposes of preceding provisions of Part X. [1960 s.60; 1965 Sch.X 1(1); 1966 Sch.VI 3(5); 1969 Sch.XX 19(5).] U.K.

For the purposes of the preceding provisions of this Part of this Act, any assessment which can no longer be varied by any Commissioners on appeal or by order of any court shall be sufficient evidence that the income or chargeable gains F73 in respect of which tax is charged in the assessment arose or were received F73 as stated therein F74 F75 .

Textual Amendments

F73 Amended in relation to development land tax byDevelopment Land Tax Act 1976 (c. 24) Sch.8 para.27. Development Land Tax Act 1976 repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

F74 SeeOil Taxation Act 1975 s.1andSch.2 para.1(1)—Oil Taxation Acts—regarding modifications in relation to petroleum revenue tax and supplementary petroleum duty.

F75 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 5 para. 10(5)—s. 100not to apply to certain penalties on underwriters' agents.

102 Mitigation of penalties. [1952 s.500; 1965 Sch.XI(1); 1966 Sch.VI 13.] U.K.

The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for [a penalty F76 ], and may also, after judgment, further mitigate or entirely remit the penalty F77 F78 .

Textual Amendments

F76 Finance Act 1989 s. 168(4).Previously

“recovery thereof”.

F77 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 5 para. 10(5)—s. 100not to apply to certain penalties on underwriters' agents.

F78 SeeFinance Act 1966 s.27andSch.6 para.23(7)(b)andS.I. 1966 No.1191, regn.4 (inPart III Vol.5)—application of this section in relation to penalties underpara.23 (transitional relief to companies with overseas trading income).

Modifications etc. (not altering text)

C17 Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 102-104 power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

103 [Time limits for penalties. U.K.

(1) Subject to subsection (2) below, where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the Commissioners or a Court—

(a) at any time within six years after the date on which the penalty was incurred, or

(b) at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.

(2) Where the tax was payable by a person who has died, and the determination would be made in relation to his personal representatives, section (1)(b) above does not apply if the tax was charged in an assessment made later than six years after the end of the chargeable period for which it was charged.

(3) A penalty under section 99 of this Act may be determined by an officer of the Board, or proceedings for such a penalty may be commenced before a court, at any time within twenty years after the date on which the penalty was incurred.

(4) A penalty to which neither subsection (1) nor subsection (3) above applies may be so determined, or proceedings for such a penalty may be commenced before the Commissioners or a court, at any time within six years after the date on which the penalty was incurred or began to be incurred F79 .]

Textual Amendments

F79 Finance Act 1989 s. 169.Previously

“Time limit for recovery of penalties. 103.—(1) Proceedings for the recovery of any penalty incurred under the Taxes Acts in connection with or in relation to tax may be commenced at any time within six years next after the date on which it was incurred, or at any later time allowed under the following provisions of this section(a).(2) Proceedings for the recovery of any penalty from any person in connection with or in relation to any tax covered by any assessment may, where any form of fraud or wilful default has been committed by him or on his behalf in connection with or in relation to that tax, be commenced at any time within three years from the final determination of the amount of tax covered by the assessment(b):Provided that this subsection shall not extend the time for the bringing of any proceedings against the personal representatives of any person by whom or on whose behalf any form of fraud or wilful default has been committed.(3) Where the amount of any penalty to which a person is liable under the Taxes Acts is determined by reference to tax(c) charged in an assessment for any chargeable period which is made not later than six years after the end of that chargeable period, proceedings for the recovery of the penalty may be commenced within three years from the final determination of the amount of that tax.[(3A)—A development land tax provision added byDevelopment Land Tax Act 1976 Sch.8 para.28. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.](4) In any proceedings for the recovery of a penalty which could not have been commenced but for subsection (3)(c) above, any tax charged in an assessment made under section 37, 39 or 40(2) of this Act shall be left out of account in determining the amount of the penalty(d).”

(a)

See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 5 para. 10(5)—s. 100not to apply to certain penalties on underwriters' agents.

(b)

SeeTaxes Management Act 1970 (c. 9, SIF 63:1) s.119andSch.4 para.11—not applicable to tax for any year before1936—37.

(c)

Amended in relation to development land tax byDevelopment Land Tax Act 1976 Sch.8 para.28. Development Land Tax Act 1976repealed byFinance Act 1985 s.98(6)andSch.27 Part X.

(d)

SeeFinance Act 1966 s.27andSch.6 para.23(7)(b)andS.I. 1966 No.1191, regn.4 (inPart III Vol.5)—application of this section in relation to penalties underpara.23 (transitional relief to companies with overseas trading income).

Modifications etc. (not altering text)

C18 Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 102-104 power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

104 Saving for criminal proceedings. [1952 s.503; 1965 Sch.X 1(1);1966 Sch.VI 13; Criminal Law Act 1967 s.1.] U.K.

The provisions of the Taxes Acts F80 shall not, save so far as is otherwise provided, affect any criminal proceedings for any misdemeanour F81 F82 .

Textual Amendments

F80 SeeOil Taxation Act 1975 s.1andSch.2 para.1(1)—Oil Taxation Acts—for modifications regarding petroleum revenue tax and supplementary petroleum duty.

F81 SeeFinance Act 1966 s.27andSch.6 para.23(7)(b)andS.I. 1966 No.1191, regn.4 (inPart III Vol.5)—application of this section in relation to penalties underpara.23 (transitional relief to companies with overseas trading income).

F82 See—Finance Act 1981 s.134andSch.17 para.18—application to special tax on banking deposits.

Modifications etc. (not altering text)

C19 Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)99)-(12)

Ss. 102-104 power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

105 Evidence in cases of fraud or wilful default. [1952 s.504; 1965 Sch.X 1(1); 1966 Sch.VI 13.] U.K.

(1) Statements made or documents produced by or on behalf of a person shall not be inadmissable in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention that—

[(a) pecuniary settlements may be accepted instead of a penalty being determined, or proceedings being instituted, in relation to any tax F83 ,]

(b) though no undertaking can be given as to whether or not the Board will accept such a settlement in the case of any particular person, it is the practice of the Board to be influenced by the fact that a person has made a full confession of any [fraudulent conduct F84 ] to which he had been a party and has given full facilities for investigation,

and that he was or may have been induced thereby to make the statements or produce the documents.

(2) The proceedings mentioned in subsection (1) above are—

(a) any criminal proceedings against the person in question for any form of [fraudulent conduct F84 ] in connection with or in relation to tax F85 , and

(b) any proceedings against him for the recovery of any [tax due from him F86 ] F87 .[and

(c) any proceedings for a penalty or on appeal against the determination of a penalty F88 .]

Textual Amendments

F83 Finance Act 1989 s. 168(5)(a).Previously

“(a) in relation to tax(a), the Board may accept pecuniary settlements instead of instituting proceedings,”

a

SeeIncome and Corporation Taxes Act 1970 s.537andSch.14 para.27(4)— “tax”

ins.105includes excess profits tax and the profits tax.

F84 Finance Act 1989 s. 149(5)but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983. Previously

“fraud or default”

and

“fraud or wilful default”.

F85 SeeIncome and Corporation Taxes Act 1970 s.537andSch.14 para.27(4)— “tax”

ins.105includes excess profits tax and the profits tax.

F86 Finance Act 1989 s. 168(5)(b).Previously

“sum due from him, whether by way of tax or penalty, in connection with or in relation to tax(a)

(b)”

(a)

SeeIncome and Corporation Taxes Act 1970 s.537andSch.14 para.27(4)— “tax”

ins.105includes excess profits tax and the profits tax.

(b)

SeeFinance Act 1966 s.27andSch.6 para.23(7)(b)andS.I. 1966 No.1191 regn.4 (inPart III Vol.5)—application of this section in relation to penalties underpara.23 (transitional relief for companies with overseas trading income).

F87 SeeFinance Act 1981 s.134andSch.17 para.18—application of this provision to the special tax on banking deposits.

F88 Finance Act 1989 s. 168(5)(c).

106 Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction. [1952 s.506; 1966 Sch.VI 17(4).] U.K.

(1) A person who refuses to allow a deduction of income tax authorised by the Taxes Acts to be made out of any payment shall incur a penalty of £50.

(2) Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void.

Scotland U.K.

107 Criminal liability for false statements made to obtain allowances. [1952 s.505; 1965 Sch.X 1(1); 1966 Sch.VI 13.] [1960 s.55(1).] U.K.

(1) This section applies only in Scotland.

(2) If any person, for the purpose of obtaining any allowance, reduction, rebate or repayment in respect of tax, either for himself or for any other person, or, in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.

(3) Notwithstanding anything in the Summary Jurisdiction (Scotland) Act 1954, proceedings for an offence under this section may be commenced at any time within three years from the time when the offence was committed.

(4) The expression “return” in this section shall be construed without regard to the definition in section 118(1) of this Act F89 .

Textual Amendments

F89 See—Taxes Management Act 1970 s.119andSch.4 para.12—1952 s.505remains in force as regards proceedings for offences committed in England and Wales before its repeal by theTheft Act 1968and in Northern Ireland before its repeal by theTheft Act (Northern Ireland) 1969.Finance Act 1981 s.134andSch.17 para.18—application of this section to the special tax on banking deposits.