Taxes Management Act 1970

95 Incorrect return or accounts for income tax or capital gains tax. [1960 s.47(1), Sch.VI; 1964(M) s.7(8); 1965 Sch.X 1(1).] U.K.

(1) Where a person fraudulently or negligently—

(a) delivers any incorrect return of a kind mentioned in section 8 or [8A or 9 of this Act (or any F1 ] of those sections as extended by section 12 of this Actor section [284(4) F2 ]of the principal Act (husband and wifeF3 )), or

(b) makes any incorrect return, statement, or declaration in connection with any claim for any allowance, deduction or relief in respect of income tax or capital gains tax, or

(c) submits to an inspector or the Board or any Commissioners any incorrect accounts in connection with the ascertainment of his liability to income tax or capital gains tax,

he shall be liable to a penalty not exceeding [the amount of the difference specified in subsection (2) below F4 .] F5

F6 M1 (2) The difference is thatbetween—

(a) the amount of income tax and capital gains tax payable for the relevant years of assessment by the said person (including any amount of income tax deducted at source and not repayable F7 ), and

(b) the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by him had been correct F6 .

M2 (3) The relevant years of assessment for the purposes of this section are, in relation to anything delivered, made or submitted in any year of assessment, that, the next following, and any preceding year of assessment; and the references in subsection (2) to the amount of income tax payable [do not, in relation to anything done in connection with a partnership F8 ], include any income tax not chargeable in the partnership name F9 .

Textual Amendments

F1 Finance Act 1990 s. 90(4)where a notice to deliver a return was, or falls to be, given after 5 April 1990. Previously

“9 of this Act (or either”.

F2 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 29 para. 32.

F3 Repealed by Finance Act 1988 (c. 39, SIF 63:1,2) s. 148and Sch. 14 Part VIIIfor 1990-91and subsequent years.

F4 Finance Act 1989 s. 163(1)(a)in relation to returns, statements, declarations or accounts delivered, made or submitted on or after 27 July 1989. Previously

“the aggregate of—(i) £50, and (ii) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (2) below.”

F5 See S.I. 1986 No. 1948 (in Part III Vol. 5) regn. 11(3)and S.I. 1989 No. 469 regn. 9—application of s. 95to individual applications to subscribe to personal equity plans.

F6 See Finance Act 1988 (c. 39, SIF 63:1,2) s. 35and Sch. 3 paras. 27and28—married couples.

F7 See S.I. 1986 No. 1948 (in Part III Vol. 5) regn. 23(4)—amounts deducted under S.I. 1986 No. 1948 regn. 23(3)to be treated as amounts of income tax deducted at source and not repayable within the meaning of and for the purposes of s. 95(2)(a)

F8 Finance Act 1971 ss.37, 38andSch.6 para.90for1973—74et seq.

F9 See—Finance Act 1966 s.27andSch.6 para.23(4)—ss.95and97applied for purposes ofFinance Act 1966 Sch.6 para.23 (transitional relief for companies with overseas trading income).Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 14 para. 7(3)(d)—application of s. 95to sums claimed under s. 266(5)(b)to which the claimant was not entitled.Finance Act 1989 s. 57(3)—application of s. 95(3)to medical insurance relief.

Modifications etc. (not altering text)

C1 S. 95 extended by Finance Act 1991 (c. 31, SIF 63:1), s. 33(3)(d)

C2 S. 95 modified by 1988 c. 1, Sch. 6A Pt. II para. 8(4) (as inserted (27.7.1993 with effect for the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 73, Sch. 4 paras.7, 8)

Marginal Citations

M1 1960 s.48(1); 1965 Sch.X 1(1).

M2 1960 s.48(2); 1965 Sch.X 1(1).