E2.259 Tax credits—penalties
A penalty of up to £3,000 may be imposed where a person fraudulently or negligently:
(a) makes an incorrect statement or declaration in, or in connection with, a claim for a tax credit or a notification of a change of circumstances given in accordance with regulations under TCA 2002, s 6, or in response to a notice under TCA 2002, s 17 (final notices); or
(b) gives incorrect information or evidence in response to a requirement by virtue of TCA 2002, s 14(2) (initial decision), s 15(2) (revised decision after notifications), s 16(3) (other revised decision), s 18(10) (decision after final notice) or s 19(2) (enquiries) or regulations under TCA 2002, s 25 (payment by employers) or in response to a notice under TCA 2002, s 21A (mandatory review of decisions before appeal)1.
Where a person liable to such a penalty is making or has made a joint claim, a penalty of up to £3,000 may be imposed on the other claimant unless that other claimant was not aware of the fraud or negligence giving rise to the penalty and could not reasonably have been expected to have been aware of it. Penalties imposed on both claimants in respect of the same declaration, information etc cannot exceed £3,000 in total2.
A penalty may also be imposed on a person acting for another, in relation to a claim or notification or notice, who fraudulently or negligently makes an incorrect statement or declaration, or gives incorrect information or evidence,
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