32(1)This paragraph applies if—
(a)in complying with a data-holder notice, the data-holder provides inaccurate data, and
(b)condition A, B or C is met.
(2)Condition A is that the inaccuracy is—
(a)due to a failure by the data-holder to take reasonable care, or
(b)deliberate on the data-holder’s part.
(3)Condition B is that the data-holder knows of the inaccuracy at the time the data are provided but does not inform HMRC at that time.
(4)Condition C is that the data-holder—
(a)discovers the inaccuracy some time later, and
(b)fails to take reasonable steps to inform HMRC.
(5)If this paragraph applies, the data-holder is liable to a penalty not exceeding £3,000.