Finance Act, 2002

Amendment of section 1072 (penalties for fraudulently or negligently making incorrect returns, etc.) of Principal Act.

131.—Section 1072 of the Principal Act is amended by inserting the following after subsection (2):

“(2A) Where any company fails to comply with a requirement to deliver a return of a kind referred to in section 884, by reason of fraud or neglect by that company, that company shall be liable to a penalty of—

(a) €630 in the case of neglect or €1,265 in the case of fraud, and

(b) (i) the amount in the case of neglect, or

(ii) twice the amount in the case of fraud,

of the difference specified in subsection (2B).

(2B) The difference referred to in subsection (2A)(b) is the difference between—

(a) the amount of corporation tax paid by the company for the accounting period or accounting periods comprising the period to which the return relates, and

(b) the amount of corporation tax which would have been payable for those periods if the return had been delivered by the company and the return had been correct.”.