7(1)Subject to sub-paragraph (5) below, where—
(a)any person engages in any conduct for the purpose of evading aggregates levy, [F1and]
F2(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)that conduct involves dishonesty (whether or not it is such as to give rise to criminal liability),
that person shall be liable to a penalty F3. . ..
[F4(1A)The amount of the penalty shall be—
(a)equal to the amount of the levy evaded, or (as the case may be) intended to be evaded, by the person’s conduct if at the time of engaging in that conduct he was or was required to be registered;
(b)equal to twice that amount if at that time the person neither was nor was required to be registered.]
(2)The references in sub-paragraph (1) above to evading aggregates levy include references to obtaining, in circumstances where there is no entitlement to it, either—
(a)a tax credit; or
(b)a repayment of aggregates levy.
(3)For the purposes of [F5sub-paragraph (1A)] above the amount of levy that was or was intended to be evaded by any conduct shall be taken to include—
(a)the amount of any tax credit, and
(b)the amount of any repayment of aggregates levy,
which was, or was intended to be, obtained in circumstances where there was no entitlement to it.
(4)In determining for the purposes of [F5sub-paragraph (1A)] above how much aggregates levy (in addition to any amount falling within sub-paragraph (3) above) was or was intended to be evaded, no account shall be taken of the extent (if any) to which any liability to aggregates levy of any person fell, or would have fallen, to be reduced by the amount of any tax credit or repayments of aggregates levy to which he was, or would have been, entitled.
(5)Where, by reason of conduct falling within sub-paragraph (1) above, a person is convicted of an offence (whether under this Act or otherwise) that person shall not by reason of that conduct be liable also to a penalty under this paragraph.
Textual Amendments
F1Word in Sch. 6 para. 7(1)(a) inserted (retrospective to 1.5.2002) by 2002 c. 23, s. 133(2)(a)(6)
F2Sch. 6 para. 7(1)(b) repealed (retrospective to 1.5.2002) by 2002 c. 23, ss. 133(2)(b)(6), 141, Sch. 40 Pt. 4(3)
F3Words in Sch. 6 para. 7(1) repealed (retrospective to 1.5.2002) by 2002 c. 23, ss. 133(2)(c)(6), 141, Sch. 40 Pt. 4(3)
F4Sch. 6 para. 7(1A) inserted (retrospective to 1.5.2002) by 2002 c. 23, s. 133(3)(6)
F5Words in Sch. 6 para. 7(3)(4) substituted (retrospective to 1.5.2002) by 2002 c. 23, s. 133(4)(6)
Modifications etc. (not altering text)
C1Sch. 6 para. 7 savings for effects of 2008 c. 9, Sch. 40 para. 21 (5.3.2009) by The Finance Act 2008, Schedule 41 (Appointed Day and Transitional Provisions) Order 2009 (S.I. 2009/511), art. 4(e)(i)