CH81165 - Penalties for Inaccuracies: Types of inaccuracy: Inaccuracy attributable to another person
You must check the date from which these rules apply for
the tax or duty you aredealing with. SeeCH81011for full details.
An inaccuracy in a person’s (P’s) return or
other document may be caused by the action of another person (T). T
may be charged a penalty in respect of this inaccuracy,
CH81075, if all the following conditions
are met.
- The inaccuracy in P’s document amount to or leads to
- an under-statement of a liability to tax, or
- a false or inflated statement of a loss, or
- a false or inflated claim to repayment of tax, see CH81071.
- The inaccuracy in P’s document is attributable to T
deliberately, see
CH81166
- supplying false information to P (whether directly or indirectly), or
- withholding information from P.
- T intended, see
CH81167, that his action would result in
P’s document containing an inaccuracy.
In appropriate cases, you should examine the underlying actions or failures
that eventually led to the inaccurate information appearing in P’s return
or document. You should record your findings. For practical examples of penalties
where an inaccuracy is attributable to another person, see CH81168.
Where T is liable to a penalty the Human Rights Act must be
considered. You must apply this guidance in conjunction with the
HRA procedures at
CH433000+.
