CH81150 - Types of inaccuracy: Deliberate but not concealed inaccuracy
This guidance applies to returns and documents with a
filing date on or after 1 April 2009 where the return covers a tax
period beginning on or after 1 April 2008 seeCH81011for full details.
A deliberate inaccuracy occurs when a person knowingly and
intentionally gives HMRC an inaccurate document. Giving a document
is explained at
CH81050.
Examples of actions that might lead to a deliberate
inaccuracy in a document include
- systematically paying wages without accounting for operating PAYE or NIC
- knowingly failing to record all sales, especially where there is a pattern to the under- recording, such as omitting all transactions with a particular customer or at a particular time of the week, month or year
- deliberately describing transactions inaccurately or in a way likely to mislead
- giving a VAT return to HMRC that includes a figure of net VAT due that is too low because the person does not have the cash at that time to pay the full amount, and later telling HMRC the true figure when he has the funds to pay
- claiming a deduction for personal expenses of such a size or frequency that the inaccuracy must have been known
- deliberately withdrawing money for personal use from an incorporated business and not making any attempt to make sure it is treated correctly for tax purposes.
Although the penalties for deliberate inaccuracies are civil
monetary penalties, we also have a
criminal investigation policy and will refer the
most serious cases for consideration of criminal proceedings where
appropriate.
For practical examples of deliberate but not concealed
inaccuracies, see
CH81151.
