Commentary

A4.580 Partnerships (harmonised penalty regime)—who is liable for penalties?

Administration and compliance

A4.580 Partnerships (harmonised penalty regime)—who is liable for penalties?

Liability of particular persons

A4.580 Partnerships (harmonised penalty regime)—who is liable for penalties?

Inaccuracy in a document

There are special provisions for partnership returns. If the nominated partner files an inaccurate partnership return, that partner is not only liable to a penalty in their own right but also incurs a 'partner's penalty' for which they and every other member of the partnership are jointly liable.

The partner's penalty is treated as a separate penalty for the purposes of the provisions on degrees of culpability, potential lost revenue, disclosure, special reductions and assessment1. Therefore the other partner(s) may take advantage of those provisions to a greater or lesser extent than the nominated partner.

If a partner's personal return is inaccurate, a penalty can be imposed for this as well as the penalty for the inaccurate partnership return. Potential lost revenue is calculated separately for the

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