General
C239 Offences and penalties. C1
1
If any person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or any other person, he shall be liable—
a
on summary conviction, to a penalty of the statutory maximum or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding 6 months or to both; or
b
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years or to both.
1A
Any reference in subsection (1) above or subsection (3) below to the evasion of tax includes a reference to the obtaining of—
a
a payment under section 14(5) above; or
b
F4ba
a refund under any regulations made by virtue of section 8C(5) above; or
; and
c
a repayment under section 23 above;
and any reference in those subsections to the amount of the tax shall be construed,—
i
in relation to tax itself or a payment falling within paragraph (a) above, as a reference to the aggregate of the amount (if any) falsely claimed by way of credit for input tax and the amount (if any) by which output tax was falsely understated; and
ii
in relation to a refund or repayment falling within paragraph (b) F5paragraph (ba) or paragraph (c) above, as a reference to the amount falsely claimed by way of refund or repayment.
2
If any person—
a
with intent to deceive produces, furnishes or sends for the purposes of this Act or otherwise makes use for those purposes of any document which is false in a material particular; or
b
in furnishing any information for the purposes of this Act makes any statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular,
he shall be liable—
i
on summary conviction, to a penalty of the statutory maximum or, where subsection (2A) or subsection (2B) below applies, to the alternative penalty specified in that subsection if it is greater, or to imprisonment for a term not exceeding 6 months or to both; or
ii
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years or to both.
2A
In any case where—
a
the document referred to in subsection (2)(a) above is a return required under this Act, or
b
the information referred to in subsection (2)(b) above is contained in or otherwise relevant to such a return,
the alternative penalty referred to in subsection (2)(i) above is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit for input tax and the amount (if any) by which output tax was falsely understated.
2B
In any case where—
a
b
the information referred to in subsection (2)(b) above is contained in or otherwise relevant to such a claim.
the alternative penalty referred to in subsection (2)(i) above is a penalty equal to three times the amount falsely claimed.
2C
The reference in subsection (2)(a) above to furnishing, sending or otherwise making use of a document which is false in a material particular, with intent to deceive, includes a reference to furnishing, sending or otherwise making use of such a document, with intent to secure that a machine will respond to the document as if it were a true document.
2D
Any reference in subsection (2)(a) or subsection (2C) above to producing, furnishing or sending a document includes a reference to causing a document to be produced, furnished or sent.
3
Where a person’s conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this section, then, whether or not the particulars of that offence or those offences are known, he shall, by virtue of this subsection, be guilty of an offence and liable—
a
on summary conviction, to a penalty of the statutory maximum or, if greater, three times the amount of any tax that was or was intended to be evaded by his conduct, or to imprisonment for a term not exceeding 6 months or to both; or
b
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years or to both.
3A
Where an authorised person has reasonable grounds for suspecting that an offence has been committed under the preceding provisions of this section, he may arrest anyone whom he has reasonable grounds for suspecting to be guilty of the offence.
4
If any person acquires possession of or deals with any goods, or accepts the supply of any services having reason to believe that tax on the supply of the goods or services F7on the acquisition of the goods from another member State or on the importation of the goods from a place outside the member States has been or will be evaded, he shall be liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount of the tax, whichever is the greater.
5
If any person supplies goods or services in contravention of paragraph 5(2) of Schedule 7 to this Act, he shall be liable on summary conviction to a penalty of level 5 on the standard scale.
C3C46
If a person other than—
a
a person registered under this Act; or
b
a body corporate treated for the purposes of section 29 above as a member of a group; or
c
a person treated as a taxable person under regulations made under section 31(4) above; or
d
a person authorised to do so under regulations made under paragraph 2(6) of Schedule 7 to this Act; or
e
a person acting on behalf of the Crown,
issues an invoice showing an amount as being tax or as being attributable to tax, he shall be liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount so shown, whichever is the greater.
C3C47
If any person fails to comply with any requirement imposed under paragraph 7 or 8 of Schedule 7 to this Act or any regulations or rules made under this Act, he shall be liable on summary conviction to a penalty of level 3 on the standard scale, together with a penalty of £10 for each day on which the failure continues.
C58
Where F8a person’s failure to comply with any regulations made under this Actconsists—
a
in not paying the tax due in respect of any period within the time required by regulations under section 14(1) above; or
b
in not furnishing a return in respect of any period within the time required by regulations under paragraph 2(1) of Schedule 7 to this Act,
F9that person shall be liable on summary conviction to a penalty of level 3 on the standard scale, together with a penalty of whichever is the greater of £10 andan amount equal to 1/2 per cent. of the tax due in respect of that period, for each day on which the failure continues; and for that purpose the tax due shall, if the person concerned has furnished a return, be taken to be the tax shown in the return as that for which he is accountable for that period and, in any other case, be taken to be such tax as has been assessed and notified to him under paragraph 4(1) of Schedule 7 to this Act.
C69
Sections 145 to 155 of the M1Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under this Act (which include any act or omission in respect of which a penalty is imposed) and penalties imposed under this Act as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act; and accordingly in section 154(2) as it applies by virtue of this subsection the reference to duty shall be construed as a reference to the tax.