[F195A Incorrect partnership return or accounts.U.K.
(1)This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership—
(a)a partner (the representative partner)—
(i)delivers an [F2incorrect partnership return], or
(ii)makes any incorrect statement or declaration in connection with [F3a [F4partnership return]], or
(iii)submits to an officer of the Board any incorrect accounts in connection with such a return, and
(b)either he does so fraudulently or negligently, or his doing so is attributable to fraudulent or negligent conduct on the part of a relevant partner.
(2)Each relevant partner shall be liable to a penalty not exceeding the difference between—
(a)the amount of income tax or corporation tax payable by him for the relevant period (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 made or submitted by the representative partner had been correct;
and in determining each such penalty, regard shall be had only to the fraud or negligence, or the fraudulent or negligent conduct, mentioned in subsection (1(b) above.
(3)Where, in respect of the same return, statement, declaration or accounts, penalties under subsection (2) above are determined under section 100 of this Act as regards two or more relevant partners—
(a)no appeal against the determination of any of those penalties shall be brought otherwise than by the representative partner [F5or a successor of his];
(b)any appeal by that partner [F6or successor] shall be a composite appeal against the determination of each of those penalties; and
(c)section 100B(3) of this Act shall apply as if that partner [F6or successor] were the person liable to each of those penalties.
(4)In this section—
“relevant partner” means a person who was a partner at any time during the relevant period;
“relevant period” means the period in respect of which the return was made.]
Textual Amendments
F1S. 95A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 28; S.I. 1998/3173, art. 2
F2Words in s. 95A(1)(a)(i) substituted (with effect in accordance with s. 88(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 32(a)
F3Words in s. 95A(1)(a)(ii) substituted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(12)
F4Words in s. 95A(1)(a)(ii) substituted (with effect in accordance with s. 88(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 32(b)
F5Words in s. 95A(3) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(13)(a)
F6Words in s. 95A(3) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(13)(b)