95A Incorrect partnership return or accounts.

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 incorrect return of a kind mentioned in section 12AA of this Act, or

ii

makes any incorrect statement or declaration in connection with such a 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;

b

any appeal by that partner 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 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.