CH81167 - Penalties for Inaccuracies: Types of inaccuracy: Intentions of another person

You must check the date from which these rules apply for the tax or duty you aredealing with. SeeCH81011for full details.

T must intend that the result or outcome of supplying false information (or withholding information) is that P’s document contains an inaccuracy that amounts 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.

To establish this you must be able to demonstrate that

• T knew that the information was specifically required to complete a return, and
• T knew that if they gave false information (or withheld information) the return would be wrong, and
• T then gave the false information (or withheld information) knowing that as a result that particular return would understate the tax due, or overstate a loss or repayment.

You therefore need to establish that T knew the consequences of their actions. Not only must they have deliberately chosen to supply false information (or deliberately withhold information) but they must have also intended P’s return to be inaccurate.

You will need to carefully examine the underlying actions that led to the inaccuracy and record your findings.

Although not conclusive, evidence that T has benefited financially as a result of the inaccuracy in P’s return or other document may be an important part of evidence of T’s deliberate intent.

See CH81168 for practical examples.