Section 240A | Underpayments: supplementary ^F1

(1)This section applies for the purposes of section 240.^F1

(2)A loss of tax is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss.^F1

(3)Where—^F1

(a)information is provided to Her Majesty's Revenue and Customs,^F1

(b)the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and^F1

(c)that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs,^F1

any loss of tax brought about by the inaccuracy is to be treated as having been brought about carelessly by that person.

(4)References to a loss of tax brought about deliberately by a person include a loss of tax brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.^F1