Penalties for inaccurate information and documents

40A

1

This paragraph applies if—

a

in complying with an information notice, a person provides inaccurate information or produces a document that contains an inaccuracy, and

b

condition A or B is met.

2

Condition A is that the inaccuracy is careless or deliberate.

3

An inaccuracy is careless if it is due to a failure by the person to take reasonable care.

4

Condition B is that the person—

a

discovers the inaccuracy some time later, and

b

fails to take reasonable steps to inform HMRC.

5

The person is liable to a penalty not exceeding £3,000.

6

Where the information or document contains more than one inaccuracy, a penalty is payable for each inaccuracy.