PART 5PENALTIES

CHAPTER 3PENALTIES FOR INACCURACIES

Penalties for inaccuracies in documents

132Penalty for deliberate inaccuracy in document given to WRA by another person

(1)

A person (referred to in this section as “person A”) is liable to a penalty where—

(a)

another person gives WRA a document,

(b)

the document contains a relevant inaccuracy, and

(c)

the inaccuracy was attributable—

(i)

to person A deliberately supplying false information to the other person (whether directly or indirectly), or

(ii)

to person A deliberately withholding information from the other person,

with the intention of the document containing the inaccuracy.

(2)

A “relevant inaccuracy” is an inaccuracy which amounts to, or leads to—

(a)

an understatement of a liability to a devolved tax,

(b)

a false or inflated statement of a loss relating to a devolved tax, F1...

(c)

a false or inflated claim to repayment of devolved tax F2, or

(d)

a false or inflated claim for a tax credit.

(3)

Person A is liable to a penalty under this section in respect of an inaccuracy whether or not the other person is liable to a penalty under section 129 in respect of the same inaccuracy.

(4)

The penalty payable under this section is F3an amount not exceeding 100% of the potential lost revenue.