TCTM10510 - Section 31 Penalty - incorrect statements
The Tax Credits Act 2002, Section 31
(see TCTM12000)
Where a person negligently or fraudulently makes an incorrect statement or they have given us information which they know is incorrect we can charge a penalty of up to but not exceeding £3,000 s31 (4). S31(3) says that if this is a joint claim an ‘innocent’ partner cannot be charged a penalty:
S31 (1) Where a person fraudulently or negligently-
(a) makes an incorrect statement or declaration in or in connection with a claim for a tax credit or a notification of a change of circumstances given in accordance with regulations under section 6 or in response to a notice under section 17, or
(b) gives incorrect information or evidence in response to a requirement imposed on him by virtue of section 14(2), 15(2), 16(3), 18(10) or 19(2) or regulations under section 25, a penalty not exceeding £3,000 may be imposed on him.
S31 (4) Where penalties are imposed under subsections (1) and (2) in respect of the same statement, declaration, information or evidence, their aggregate amount must not exceed £3,000.