PART XPenalties, etc.

96Incorrect return or accounts for corporation tax

1

Where a company fraudulently or negligently—

a

delivers any incorrect return under section 11 of this Act (or under that section as extended by section 12 of this Act), or

b

makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief in respect of corporation tax, or

c

submits to an inspector or any Commissioners any incorrect accounts in connection with the ascertainment of the company's liability to corporation tax,

the company shall be liable to a penalty not exceeding 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.

2

The difference is that between—

a

the amount of corporation tax payable by the said company for the accounting period or accounting periods comprising the period to which the return, statement, declaration or accounts relate, and

b

the amount which would have been the amount so payable if the return, statement, declaration or accounts had been correct.