SCHEDULES

SCHEDULE 24Penalties for errors

Part 1Liability for penalty

F1Error in taxpayer's document attributable to another person

1A

(1)

A penalty is payable by a person (T) where—

(a)

another person (P) gives HMRC a document of a kind listed in the Table in paragraph 1,

(b)

the document contains a relevant inaccuracy, and

(c)

the inaccuracy was attributable to T deliberately supplying false information to P (whether directly or indirectly), or to T deliberately withholding information from P, with the intention of the document containing the inaccuracy.

(2)

A “relevant inaccuracy” is an inaccuracy which amounts to, or leads to—

(a)

an understatement of a liability to tax,

(b)

a false or inflated statement of a loss, or

(c)

a false or inflated claim to repayment of tax.

(3)

A penalty is payable under this paragraph in respect of an inaccuracy whether or not P is liable to a penalty under paragraph 1 in respect of the same inaccuracy.