A relevant penalty is one that is for
- a deliberate inaccuracy in the person's return or other document (FA07/Sch24/Para 1)
- deliberately supplying false information to or withholding information from another person with the intention of that other person's return or document being inaccurate (FA07/Sch24/Para 1A)
- deliberately failing to comply with certain obligations (FA08/Sch41/Para 1)
- a deliberate VAT or Excise wrongdoing (FA08/Sch41/Paras 2 - 4).
The person may make arrangements to conceal their offence. A penalty for a deliberate and concealed offence is also a relevant penalty.
In this learning we refer to the offences that result in relevant penalties as deliberate defaults.
The term 'relevant penalty' is a simple way to describe all the penalties that Section 94 applies to. It is important to remember that
- the rules in Schedule 24 FA 2007 and Schedule 41 FA 2008 for determining whether a penalty has been incurred and for calculating the amount of the penalty are not changed by Section 94, and
- Section 94 does not apply to any pre-FA 2007 and pre-FA 2008 penalties for similar offences.
If you need to see an explanation of deliberate, or deliberate and concealed go to
- CH81150 and CH81160 (inaccuracies)
- CH72160 and CH72120 (failure to notify)
- CH93200 and CH93100 (VAT & Excise wrongdoings).
Click here to return to Section 94 Finance Act 2009.