Tax Credits Act 1999

9 Penalties for fraud etc. and failures to comply. E+W+S+N.I.

(1) Where a person fraudulently or negligently makes any incorrect statement or declaration in connection with a claim for tax credit, he shall be liable to a penalty not exceeding the amount of the difference specified in subsection (2) below.

(2) The difference is that between—

(a) the amount of tax credit to which the claimant is or was entitled in the payment period to which the claim relates; and

(b) the amount of tax credit to which he would have been so entitled if the statement or declaration had been correct.

(3) Where a person—

(a) fails to furnish any information or evidence in accordance with regulations under section 5(1)(h) or (hh) of the Administration Act so far as relating to tax credit;

(b) fails to produce any document or record, or to provide any information, in accordance with regulations under section 6 above; or

(c) fails to deliver any document or furnish any particulars in accordance with the provisions applied by section 8(1) above,

he shall be liable, subject to section 10 below, to the penalties mentioned in subsection (4) below.

(4) The penalties are—

(a) a penalty not exceeding £300; and

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

(5) Where a person fraudulently or negligently—

(a) furnishes any incorrect information or evidence of a kind mentioned in regulations under section 5(1)(h) or (hh) of the Administration Act so far as relating to tax credit;

(b) produces any incorrect document or record, or provides any incorrect information, of a kind mentioned in regulations under section 6 above; or

(c) delivers any incorrect document or furnishes any incorrect particulars of a kind mentioned in the provisions applied by section 8(1) above,

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

(6) Where, in the case of any employee—

(a) an employer refuses or repeatedly fails to make payments of tax credit in accordance with regulations under section 6 above; and

(b) the Board cancels the notification of entitlement with a view to the payments being made by officers of the Board,

the employer shall be liable to a penalty not exceeding £3,000.

(7) Where, in the case of any employee, an employer fraudulently or negligently—

(a) makes or receives incorrect payments in a tax year in pursuance of regulations under section 6 above; or

(b) delivers an incorrect return of payments made or received by him in that year in pursuance of such regulations,

he shall be liable, subject to section 10 below, to a penalty not exceeding £3,000; but no such penalty shall be imposed in respect of any incorrect payments in respect of which a penalty has been imposed under subsection (6) above.

(8) In this section “the Administration Act” means the M1 Social Security Administration Act 1992 or the M2 Social Security Administration (Northern Ireland) Act 1992.

Annotations:

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Marginal Citations

M1 1992 c.5.

M2 1992 c.8.