Taxes Management Act 1970

95 Incorrect return or accounts for income tax or capital gains tax. U.K.

(1) Where a person fraudulently or negligently—

(a) delivers any incorrect return of a kind mentioned in [F1 section 8 or 8A of this Act (or either of those sections] as extended by section 12 of this Act F2 ... , 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 [F3 the amount of the difference specified in subsection (2) below.]

(2) The difference is that between—

(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), 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.

(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; F4 ...

Textual Amendments

F1 Words in s. 95(1)(a) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 27(1); S.I. 1998/3173, art. 2

F2 Words in s. 95(1)(a) repealed by Finance Act 1988 (c. 39), s. 148, Sch. 14 Part VIII for 1990-91 and subsequent years.

F3 Words in s. 95(1) substituted by Finance Act 1989 (c. 26), s. 163(1)(a) in relation to returns, statements, declarations or accounts delivered, made or submitted on or after 27 July 1989.

F4 Words in s. 95(3) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 27(2), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C1 S. 95 applied (with modifications) by Income and Corporation Taxes Act 1988 (c. 1), Sch. 14 para. 7(3)(d)

S. 95 applied (with modifications) by Finance Act 1989 (c. 26), s. 57(3)

C2 S. 95 modified by Finance Act 1988 (c. 39), s. 35, Sch. 3 paras. 27, 28—married couples.

C3 S. 95 modified by The Personal Equity Plan Regulations 1989 (S.I. 1989/469), reg. 9 (revoked (6.4.2008) by S.I. 2007/2120, reg. 4)

C4 S. 95 extended by Finance Act 1991 (c. 31), s. 33(3)(d)

C5 S. 95: power to apply conferred (1.5.1995) by Finance Act 1995 (c. 4), s. 73(4)(d)

C6 S. 95 applied (with modifications) (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 26(3)

C7 S. 95 applied (N.I.) (1.4.2000) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 1, 26(3)

C8 S. 95 applied by Finance Act 1993 (c. 34), Sch. 20A para. 9(5) (as inserted (22.7.2004) by Finance Act 2004 (c. 12), Sch. 25 para. 3)

C9 S. 95 modified (with effect in accordance with s. 33(1) of the amending Act) by Finance Act 2004 (c. 12), s. 33(5)(a)

C10 S. 95 restricted (22.7.2004 for specified purposes) by Finance Act 2004 (c. 12), ss. 313(4)(a), 319(1)(2) (with s. 314)