Commentary

A4.586 Penalties—supply of false information by third party (harmonised penalty regime)

Administration and compliance

A4.586 Penalties—supply of false information by third party (harmonised penalty regime)

A4.586 Penalties—supply of false information by third party (harmonised penalty regime)

Introduction

There was no mechanism within the pre-harmonised penalty regimes to deal with the situation where an error in a return was the result of action by a person other than the one giving the return to HMRC. With effect from 1 April 2009, the penalty regime for inaccurate documents was amended to penalise a third party who deliberately supplies a taxpayer with false information with the intention of causing the taxpayer to submit an inaccurate return1.

To attribute a penalty to a third party, HMRC needs to demonstrate that the third party deliberately supplied false information or deliberately withheld information with the intention that a document supplied to HMRC should be incorrect.

FA 2007, Sch 24, para 1A does not normally cover the situation where an agent merely files the taxpayer's return; in such a case the penalty falls on the

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