CH81166 - Penalties for Inaccuracies: Types of inaccuracy: Actions of 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 may be
caused by information given (or not given) by another person (T).
The fact that another person (T) gave (directly or indirectly) or
did not give information to P is not in itself evidence that the
inaccuracy in P’s return is attributable to T.
Every person is responsible for the accuracy of their return
and we expect them to take reasonable care,
CH81120 and
CH81125, within their ability and
circumstances that
- any information given by another person and used in their return is correct and complete, or
- any information requested from and not provided by another person is not available from another source.
If P has to rely upon T to supply information to complete a
return and T supplies full and accurate information, then any
inaccuracy cannot be attributable to T.
However, if P has to rely on T, and T
- deliberately chooses to supply false information, or
- deliberately chooses to withhold information,
then any inaccuracy that results is attributable to T. T may be
charged a penalty, see
CH81165.
P may also be charged a penalty for the same inaccuracy if
they did not take reasonable care to ensure that the information
supplied by T was correct. The total of the penalties charged to P
and T cannot exceed 100% of the potential lost revenue, see the
example at
CH84974.
‘Deliberately’ means that T knows that they are
giving false information (or that they are withholding information)
and intends to do that, see
CH81167.
‘Information’ means facts or explanations of
facts.
‘False’ information is rather more than
information that is wrong. It is information that is intended to
deceive the recipient. It is information that is incorrect and/or
incomplete but is represented as being the truth.
See the guidance at
CH84545 where P relies on an agent or
other adviser.
