1053 Penalty for fraudulently or negligently making incorrect returns, etc

Summary

This section, which applies up to the passing of the Finance (No. 2) Act 2008 (24 December 2008), provides for penalties where incorrect returns, records, statements, declarations, accounts, etc are submitted either fraudulently or negligently or where no return has been submitted.

Details

(1), (5) & (6) A penalty of €125, plus a sum amounting to the difference between the amount of tax payable by the person for the relevant tax years and the amount which would have been the correct amount payable had the return, statement, declaration or accounts submitted by the person been correct, applies to a person who fraudulently or negligently —

• delivers an incorrect return or statement of the kind mentioned in any of the provisions listed in Schedule 29, Column 1,
• makes an incorrect return, statement or declaration for any allowance, deduction or relief, or
• files incorrect accounts with the Revenue Commissioners, the Appeal Commissioners or an inspector in relation to ascertaining his/her liability to income tax.

The penalties outlined in this subsection are subject to increase where the person concerned is a “body of persons” – see section 1054.

The relevant tax years in relation to anything delivered, made or submitted in any year of assessment are the year in question, its preceding and its following year of assessment.

(1A) & (5A) Where no return is made by reason of fraud or negligence a penalty of €125 is applied plus the difference between the amount of tax paid for the relevant years and the amount of tax which would have been payable if returns had been made for those years and those returns were correct.

(2) A penalty of €125 applies to a person who negligently furnishes, gives, produces or makes any incorrect return, information, certificate, document, record, statement, particulars, account or declaration of the kind mentioned in any of the provisions listed in Schedule 29, Column 2 or 3. In the case of fraud, the penalty is €315.

The penalties outlined in this subsection are subject to increase where the person concerned is a “body of persons” – see section 1054.

(3) A return, statement, declaration or account is deemed to have been made negligently or submitted by a person where an acknowledged error in any such document is not rectified by the person within a reasonable period.

(4) The commencement of proceedings for the recovery of any penalty under this section is not affected by the expiration of the 6 year time limit outlined in section 1063 but is subject to the provisions of section 1060(2) which state that proceedings may not be commenced against the personal representatives of a deceased person after the expiration of the time limits during which assessments (in respect of profits or gains which arose or accrued to the deceased person before death) may be made on the personal representatives by virtue of section 1048(2).

(7) For the purposes of this section, any accounts submitted on behalf of a person are deemed to have been submitted by that person unless that person proves that those accounts were submitted without that person’s permission or knowledge.

(8) This section applies only in respect of contraventions occurring up to the passing of the Finance (No. 2) Act 2008 (i.e. up to 24 December 2008).

Relevant Date: Finance Act 2021