TMA 1970, s 98

(a) has been required, by a notice served under or for the purposes of any of the provisions specified in the first column of the Table below, to deliver any return or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice, or
(b) fails to furnish any information, give any certificate or produce any document or record in accordance with any of the provisions specified in the second column of the Table below,
he shall be liable, subject to [subsections (3) and (4) below –
(i) to a penalty not exceeding £300, and
(ii) if the failure continues after a penalty is imposed under paragraph (i) above, to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under paragraph (i) above was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).]6
(2) [Subject to section 98A below, where]5 a person fraudulently or negligently furnishes, gives, produces or makes any incorrect information, certificate, document, record or declaration of a kind mentioned in any of the provisions specified in either column of the Table below, he shall be liable to a penalty not exceeding [£3,000]7.
[(3) No penalty shall be imposed under subsection (1) above in respect of a failure within paragraph (a) of that subsection at any time after the failure has been remedied.]8
[(4) No penalty shall be imposed under paragraph (ii) of subsection (1) above in respect of a failure within paragraph (b) of that subsection at any time after the failure has been remedied.]8
[(4A) If –
(a) a failure to comply with section 350(1) of, or Schedule 16 to, the principal Act arises from a person’s failure to deliver an account, or show the amount, of a payment, and
(b) the payment is within subsection (4B) [or (4D)]88 below,subsection (1) above shall have effect as if for “£300” there were substituted “£3,000” and as if for “£60” there were substituted “£600”.
(4B) A payment is within this subsection if –
(a) the payment is made by a company [or local authority]87 without an amount representing the income tax on the payment being deducted from the payment,(b) at the time the payment is made, the company [or authority]87 –
(i) does not believe that [one]87 of the conditions specified in section 349B of the principal Act is satisfied, or
(ii) where it believes that [one]87 of those conditions is satisfied, could not reasonably so believe,
(c) the payment is one from which tax is deductible under section 349 of the principal Act unless the company [or authority]87 reasonably believes that one of those conditions is satisfied, and
(d) [none]87 of those conditions is satisfied at the time the payment is made.
[(4C) In subsection (4B) above –
“company” includes a partnership of which any member is a company; and”local authority” includes a partnership of which any member is a local authority.]87]83
[(4D) A payment is within this subsection if –
(a) it is a payment to which section 349(1) of the principal Act (requirement to deduct tax) applies,
(b) it is made by a company which, purporting to rely on section 349E(1) of that Act (power for companies to take account of double taxation treaty relief when paying royalties), deducts less tax from the payment than required by section 349(1) of that Act, and
(c) at the time the payment is made the payee (within the meaning of section 349E of that. Act) is not entitled to relief in respect of the payment under any arrangements under section 788 of that Act (double taxation relief) and the company –
(i) does not believe that it is entitled to such relief, or
(ii) if it does so believe, cannot reasonably do so.]88
[(5) In the case of a failure to comply with section 765A(2)(a) or (b) of the principal Act, subsection (1) above shall have effect as if for “£300” there were substituted “£3,000” and as if for “£60” there were substituted “£600”.]23

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