Finance Act, 1973

Amendment of section 27 of Principal Act.

84.—Section 27 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (5):

“(5) A person who fraudulently or negligently—

(a) issues an invoice in which an amount of tax is stated, in such circumstances that, apart from his liability under subsection (5) or (6) of section 17, the said amount does not represent the amount of tax (if any) which becomes due by him in respect of the transaction to which the invoice relates, or

(b) issues a credit note showing an amount of tax other than that properly applicable to the transaction to which the credit note relates,

shall be liable to a penalty of—

(i) £100, and

(ii) the amount, or, in the case of fraud, twice the amount of his liability under the said subsection (5) or (6), as the case may be, in respect of the issue of any such invoice or credit note.”.