Section 62A | Payments made in the knowledge of deliberate failures to comply

(1)This section applies to a person who—

(a)has made a payment under a construction contract, and

(b)before making a payment, knew or should have known that a connected party had deliberately failed, or would deliberately fail, to comply with a requirement to—

(i)deduct a sum under section 61,

(ii)pay a sum to the Commissioners under section 62, or

(iii)deduct or pay an amount to His Majesty’s Revenue and Customs under PAYE regulations.

(2)If this section applies, an officer of Revenue and Customs may determine that the person is liable to pay to the Commissioners an amount equal to 20% of the payment referred to in subsection (1).

(3)In this section, a “connected party” is

(a)another party to the construction contract referred to in subsection (1)(a), or

(b)a party to another construction contract relating to the same construction operations as the construction contract referred to in subsection (1)(a).