(1)In section 64 of the M1Value Added Tax Act 1994 (repeated misdeclaration penalty), the following subsections shall be substituted for subsections (6) and (7) (inaccuracies treated as not material)—
“(6)Subject to subsection (6A) below, where by reason of conduct falling within subsection (1) above—
(a)a person is convicted of an offence (whether under this Act or otherwise), or
(b)a person is assessed to a penalty under section 60 or 63,
the inaccuracy concerned shall not be regarded as material for the purposes of this section.
(6A)Subsection (6) above shall not prevent an inaccuracy by reason of which a person has been assessed to a penalty under section 63—
(a)from being regarded as a material inaccuracy in respect of which the Commissioners may serve a penalty liability notice under subsection (2) above; or
(b)from being regarded for the purposes of subsection (3) above as a material inaccuracy by reference to which any prescribed accounting period falling within the penalty period is to be treated as the first prescribed accounting period so falling in respect of which there is a material inaccuracy.
(7)Where subsection (5) or (6) above requires any inaccuracy to be regarded as not material for the purposes of the serving of a penalty liability notice, any such notice served in respect of that inaccuracy shall be deemed not to have been served.”
(2)This section has effect in relation to inaccuracies contained in returns made on or after the day on which this Act is passed.
Marginal Citations