EM4860 - Penalties: Assisting and Inducing Incorrect Returns, Accounts etc

TMA70/S99

A person who assists in or induces the preparation or delivery of any information, return, accounts or other documents which he knows will be (or are likely to be) used for tax purposes and also knows them to be incorrect, is to be liable to a penalty not exceeding £3,000.

A charge of assisting or inducing could apply where, for example, a claim has been signed by an agent who was aware that it was false.

The time limit for a penalty is now 20 years from the date when the penalty was incurred.

The main use of TMA70/S99 is against dishonest accountants and local action is limited to reporting suspected cases to Accountancy Units via your local Area accountant.