SCHEDULES
C1SCHEDULE 24Penalties for errors
Part 2Amount of penalty
Potential lost revenue: multiple errors
I16
1
Where P is liable to a penalty in respect of more than one inaccuracy, and the calculation of potential lost revenue under paragraph 5 in respect of each inaccuracy depends on the order in which they are corrected—
a
careless inaccuracies shall be taken to be corrected before deliberate inaccuracies, and
b
deliberate but not concealed inaccuracies shall be taken to be corrected before deliberate and concealed inaccuracies.
2
In calculating potential lost revenue where P is liable to a penalty in respect of one or more understatements in one or more documents relating to a tax period, account shall be taken of any overstatement in any document given by P which relates to the same tax period.
3
In sub-paragraph (2)—
a
“understatement” means an inaccuracy that satisfies Condition 1 of paragraph 1, and
b
“overstatement” means an inaccuracy that does not satisfy that condition.
4
For the purposes of sub-paragraph (2) overstatements shall be set against understatements in the following order—
a
understatements in respect of which P is not liable to a penalty,
b
careless understatements,
c
deliberate but not concealed understatements, and
d
deliberate and concealed understatements.
5
In calculating potential lost revenue in respect of a document given by or on behalf of P no account shall be taken of the fact that a potential loss of revenue from P is or may be balanced by a potential over-payment by another person (except to the extent that an enactment requires or permits a person's tax liability to be adjusted by reference to P's).
Sch. 24 applied (N.I.) (1.4.2008) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 7(2A)(b), 26(4) (as amended by S.R. 2008/129, regs. 1, 3(a), 4)