SCHEDULE 24Penalties for errors
Part 1Liability for penalty
Degrees of culpability
3
(1)
F1For the purposes of a penalty under paragraph 1, inaccuracy in a document given by P to HMRC is—
(a)
“careless” if the inaccuracy is due to failure by P to take reasonable care,
(b)
“deliberate but not concealed” if the inaccuracy is deliberate F2on P's part but P does not make arrangements to conceal it, and
(c)
“deliberate and concealed” if the inaccuracy is deliberate F2on P's part and P makes arrangements to conceal it (for example, by submitting false evidence in support of an inaccurate figure).
(2)
An inaccuracy in a document given by P to HMRC, which was neither careless nor deliberate F3on P's part when the document was given, is to be treated as careless if P—
(a)
discovered the inaccuracy at some later time, and
(b)
did not take reasonable steps to inform HMRC.