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 which he also knows to be incorrect, is to be liable to a penalty not exceeding £3,000. The time limit for a penalty is now 20 years from the date when the penalty was incurred

A S99 penalty cannot under any circumstances be issued locally.

The main use of TMA70/S99 is against dishonest accountants, for example an agent who signs a claim that they know is false.

You may need to do one or more of the following:

• If you believe that an inaccuracy in a return is the result of another person’s actions, see CH81166

• If you suspect that evasion is the result of another person’s actions, consider referring the case to the Evasion Management Team (EMT).

• If you believe that an agent’s behaviour is the root cause of any potential loss of tax, make a report using the agent referral stencil.

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 HMRC accountant.