942. Civil penalties for errors and failure to notify where under-assessment; mitigation.

A penalty is payable by a person ('P') where he gives the Commissioners for Her Majesty's Revenue and Customs a VAT return1 or a return, statement or declaration in connection with a claim and it contains a careless2 inaccuracy which leads to an understatement of a liability to VAT, a false or inflated statement of a loss or a false or inflated claim to repayment of tax3. A penalty is also payable by a person ('T') where another person ('P') gives the Commissioners a VAT return or a return, statement or declaration in connection with a claim, and it