Part 3Income tax, corporation tax and capital gains tax

Chapter 3Construction industry scheme

Verification, returns , security etc and penalties

F172Penalties

(1)

This section applies in a case within subsection (2), (3) or (4).

(2)

A case is within this subsection if a person (“A”)—

(a)

makes a statement, or furnishes a document, which A knows to be false in a material particular, or

(b)

recklessly makes a statement, or furnishes a document, which is false in a material particular,

for the purpose of becoming registered for gross payment or for payment under deduction.

(3)

A case is within this subsection if a person (“A”) who exercises influence or control over another person (“B”) or is in a position to do so —

(a)

makes a statement, or furnishes a document, which A knows to be false in a material particular, or

(b)

recklessly makes a statement, or furnishes a document, which is false in a material particular,

for the purpose of enabling or facilitating B to become registered for gross payment or for payment under deduction.

(4)

A case is within this subsection if a person (“A”) who exercises influence or control over another person (“B”) or is in a position to do so—

(a)

encourages B to make a statement, or furnish a document, which A knows to be false in a material particular, or

(b)

encourages B to make a statement or furnish a document—

(i)

which is false in a material particular, and

(ii)

where A is reckless as to whether the statement or document is false in a material particular,

for the purpose of enabling or facilitating B to become registered for gross payment or for payment under deduction.

(5)

In a case where this section applies, A is liable to a penalty not exceeding £3,000.